Skip to main content
Internet Archive's 25th Anniversary Logo

Full text of "Investigation of organized crime in interstate commerce. Hearings before a Special Committee to Investigate Organized Crime in Interstate Commerce, United States Senate, Eighty-first Congress, second session, pursuant to S. Res. 202 .."

See other formats


-F 


"Bi 


ciV9.H.V.a77.5.».A53 


pt.  I 
t|popy 


3^ 


INVESTIGATION  OF  ORGANIZED  CRIME 
IN  INTERSTATE  COMMERCE 


HEARINGS 

BEFORE  A 

SPECIAL  COMMITTEE  TO  INVESTIGATE 

OEGANIZED  CKIME  IN  INTEKSTATE  COMMERCE 

UNITED  STATES  SENATE 

EIGHTY-FIEST  CONGEESS 

SECOND  SESSION 
PDRSDANT  TO 

S.  Res.  202 

A  RESOLUTION  AUTHORIZING  AN  INVESTIGATION 

OF  ORGANIZED  CRIME  IN  INTERSTATE 

COMMERCE 


PART  1 


FLORIDA 


MAY  26  AND  27,  JULY  13,  14,  AND  15,  AUGUST  S 
AND  10,  AND  SEPTEMBER  19,  22,  AND  26,  1950 


Printed  for  the  use  of  the  Special  Committee  to  Investigate 
Organized  Crime  in  Interstate  Commerce 


NVESTIGATION  OF  ORGANIZED  CRIME 
IN  INTERSTATE  COMMERCE 


HEARINGS 

BEFORE   A 

SPECIAL  COMMITTEE  TO  INVESTIGATE 

DEGANIZED  CRIME  W  INTERSTATE  COMMERCE 

UNITED  STATES  SENATE 

EIGHTY-FIRST  CONGRESS 

SECOND  SESSION 
PURSUANT  TO 

S.  Res.  202 

A  RESOLUTION  AUTHORIZING  AN  INYESTIGATION 

OF  ORGANIZED  CRIME  IN  INTERSTATE 

COMMERCE 


PART  1  ,  v\^' 


.<V^ 


V 


FLORIDA 


MAY  26  AND  27,  JULY  13,  14,  AND  IJ-  AUGUST  9 
AND  10,  AND   SEPTEMBER  19,  22,  AND  26,  19o0 

Printed  for  the  use  of  the  Si>ecial  Committee  to  Investigate 
Organized  Crime  in  Interstate  Commerce 


UNITED  STATES 
GOVERNMENT  PRINTING  OFFICE 
^gy^g  WASHINGTON  :  1950 


,^v 


Cofi 


SPECIAL   COMMITTEE  TO   INVESTIGATE  ORGANIZED  CRIME  IN 
INTERSTATE  COMMERCE 

ESTES  KEPAUVER,  Tennessee,  Chairman 
HERBERT  R.  O'CONOR,  Maryland  CHARLES  W.  TOBEY,  New  Hampshire 

LESTER  C.  HUNT,  Wyoming  ALEXANDER  WILEY,  Wisconsin 

RUDOLPH  Halley,  Chief  Counsel 

II 


CONTENTS 


Testimony  of —  Page 

Allenberg,  Abe,  3301  Collins  Ave.,  Miami  Beach,  Fla___  29,  89^125,  475-487 

Burbridge,  William,  city  councilman,  Miami  Beach,  Fla 430-434 

Burk,  Thomas  G.,  deputy  sheriff,  Dade  County,  Fla 194r-213 

Clark,  Walter,  pherifl",  Broward  County,  Fla.,  accompanied  by  C.  L. 

Chancey,    attorney 126-134,    452-475 

Cohen,  Ben,  attorney,  Miami  Beach,  Fla 492-531 

Costa r,  Charles  B.,  accountant,  903  First  National  Bank  Building, 
Miami,    Fla.,    accompanied   by   William    G.    Ward,    attorney,    1229 

Dupont  Building,  Miami,  Fla 30-41 

Crosby,  William  O.,  investigator  for  the  Governor  of  the  State  of 
Florida,     accompanied     by    Mr.     Starrey,     attorney,     Tallahassee, 

Fla 370-386 

Eisen,  Ben,  accountant,  1308  Harrison  Street,  Hollywood,  Fla 4-26 

Eisen,   Seymour,  Hollywood,  Fla 4-26 

Ervin,  Richard,  attorney  general,   State  of  Forida,  accompanied  by 

Messrs.  Gasque,  Toni,  and  Norton,  of  attorney  general's  staff 177-191 

Fant,  Julian  E.,  treasurer,  Warren  Campaign  for  Goveimor 366-369 

Pulenwider,    Jack,    former    investigator    for    Crime    Commission    of 

Greater  Miami,  Fl:. 280-282 

Fulford,  S.  R.,  policeman,  town  of  North  Miami,  Fla 272-278 

Furman,  M.  G.,  accountant,  Miami  Beach,  Fla 284-237,  434-445 

Gips,  Leon,  Miami  Beach,  Fla 411-420,  423 

Goldman,  Abe  A.,  public-relations  agent,  Miami,  Fla 284^290 

Griffin,  C.  V.,  Howey-in-the-Hills,  Fla.,  accompanied  by  David  Reich, 

attorney.    Washington,   D.    G 353-366,   596-599 

Hall,  David  W.,  accountant,  Miami.  Fla 306-316,  328-330 

Harkness.  Alistair  G..  Dade  County,  Fla 290 

Hart,  Ralph  M..  accountant,  310  Citizens  Building,  West  Palm  Beach, 

.    Fla.,  accompanied  by  Mr.  Chappell,  attorney,  Miami,  Fla 43-65 

Hawkins,  J.  L.,  chief  criminal  deputy,  sheriff's  office,  Dade  County, 

Fla 278-280 

Hibbs,  Mrs.  Hazel,  246  Northwest  Thirty-first  Street,  Miami,  Fla 26-29 

Howden,  R.  W.,  investigator  for  Equitable  Life  Assurance  Co.,  1428 

Northwest  Thirty-second  Street,  Miami,  Fla 191-194 

Johnston,  William  H.,  Jacksonville,  Fla.,  and  Chicago,  111.,  accom- 
panied by  John  W.  Pehle  and  Laurence  S.  Lesser,  attorneys,  Wash- 
ington. D.  C 600-609,616-655 

Levitt,  Jules,  Miami  Beach,  Fla..  accompanied  by  Ben  Cohen,  attornev, 

Miami  Beach,  Fla '532^547 

Levitt,  Leo,  Miami  Beach,  Fla..  accompanied  by  Ben  Cohen,  attorney, 

Miami  Beach,  Fla 547-556 

Milledge,  Stanley,  .ludge,  circuit  court  of  Dade  County,  Fla 144-152 

Morris,  Walter,  assistant  director  of  communications.  National  Air- 
lines, 1947  Northwest  Forty-eighth  Street,  Miami,  Fla 140-144 

Neu,  Mrs.  Gladys,  Aberdeen,  ^Md.,  accompanied  by  John  L.  Laskey, 

attorney 1 , '718-730 

Neu,   Richard  A.,  Aberdeen,  Md.,  accompanied  by  John   L.   Laskey, 

attorney ' '707-718 

O'Rourke,  John  F.,  521  Second  Street,  Miami,  Fla 66-89,  445-452 

Parker,  Robert,  903  First  National  Bank  Building,  Miami.  Fla.,  accom- 
panied by  Robert  C.  Ward,  attorney,  1229  Dupont  Building,  Miami, 

Fla 1-4 

Perdue.  Pat,  vice  squad,  Miami  Beach,  Fla 420-430' 

III 


IV 


CONTENTS 


Testimony  of — Continued  ^^^^ 

Perkins,  S.  M.,  accountant,  340  Candia,  Coral  Gables,  Fla_—  174-177,  282-283 

Plissner,  Harry,  Miami  Beach,  Fla 332-337 

Rice,  Maj.  Thomas  A.,  and  Mrs.  Kuth  M.,  Aberdeen,  Md 703-707 

Richard,  Melvin  J.,  city  councilman,  Miami  Beach,  Fla 213-230 

Rosenbaum,  Edward,  1040  Venetian  Way,  Miami,  Fla.,  accompanied 

by  Ben  Cohen,  attorney,  Miami  Beach,  Fla 55e-577,  591-596 

Rush,  John  A.,  attorney,  Jacksonville,  Fla 387-407 

Russell,  Harry,  Miami  Beach,  Fla 657-662,  664-687 

Salvey,    Harold,    Miami    Beach,   Fla.,    accompanied    by    Ben    Cohen, 

attorney,  Miami  Beach,  Fla 577-590 

Schine,  Meyer,  Miami  Beach,  Fla.,  accompanied  by  Oscar  L.  Gruber, 

attorney.  New  York,  N.  Y 346-353,  611-616 

Short,  Phil  R.,  lieutenant  of  police,  Miami  Beach,  Fla 407-411 

Sullivan,  Daniel  P.,  operating  director,  Crime  Commission  of  Greater 

Miami,    Fla 152-174 

Sullivan,  James  A.,  sheriff,  Dade  County,  Fla.,  accompanied  by  Richard 

M.  Hunt,  attorney,  Miami  Beach,  Fla 237-271,  283-284,  291-331 

Ta.vlor,  Harry  G.,  attorney,  807  Dupont  Building,  Miami,  Fla 230-232 

Voikart,  Ernest,  Jr.,  assistant  cashier,  First  National  Bank,  Aberdeen, 

Md 689-696 

Voikart,  Ernest,  Sr.,  attorney,  Aberdeen  and  Baltimore,  Md 696-703 

Wolfson,  Louis,  Miami,  E'la.,  and  New  York  City ^__  337-345 

Schedule  and  summary  of  exhibits iv-ix 

Friday,  May  26,  1950 1 

Saturday,  Rlay  27, 1950 43 

Thursday,  July  13,  1950 135 

Friday,  July  14,  1950 233 

Saturday,  July  15,  1950 387 

Wednesdav,  August  9,  1950 491 

Thursday,  August  10,  1950 610 

Tuesday,  September  19,  1950 , 656 

Friday,  September  22,  1950 663 

Tuesday,  September  26, 1950 688 

Appendix 731-798 

Supplemental  data 798-804 

SCHEDULE  OF  EXHIBITS 


Number  and  summary  of  exhibits 


1.  Greenacres  Casino  summary,  1949-50  ledger 

2.  Greenacres  Casino  payroll  ledger,  1950 

3.  Club  Eoheme  payroll  ledger,  1950 

4.  Club  Boheme,  1948-49  and  1949-50  seasons'  ledgers.  _. 

5.  Greenacres  Casino  cash  book,  1949-50 

6.  Club  Boheme  cash  book,  1948-49  and  1949-50 

7.  Income-tax  return  of  Club  Boheme,  1948 

8.  Federal  income-tax  returns  of  Jake  Lansky,   1936-48; 

also,  Louisiana  and  New  York  State  returns 

9.  Income-tax  returns  of  George  Sadlo 

10.  Income-tax  returns  of  S.  L.  Bratt 

11.  Income-tax  returns  of  Vincent  Alo 

12.  Income-tax  returns  of  William  and  Ida  Bischoff 

13.  Income-tax  returns  of  Colonial  Inn 

14.  Income-tax  returns  of  Greenacres  and  William  Bischoff, 

trading  as  Greenacres  Club,  1945  through  1949 

15.  Income-tax    returns    for    Greenacres    Club    for    1944 

through  1949 

16.  Partnership    return,    entitled    "Frank    Erickson,    Bert 

Briggs,  and  Colonial  Inn" 

'  Returned  to  witness. 


Introduced 

Appears  on 

at  page— 

pa^e— 

5 

(0 

5 

(') 

5 

{') 

5 

(') 

5 

{') 

5 

(') 

7 

(0 

7 

(0 

8 

(') 

8 

(0 

8 

(•) 

8 

{') 

8 

(') 

9 

(0 

16 

(0 

16 

(0 

CONTENTS 
SCHEDULE  OF  EXHIBITS— Continued 


Number  and  summary  of  exhibits 


17.  Tax  returns  reflecting  ownership  of  Colonial  Inn  and 

sale  of  this  property  to  Greenacres 

18.  Statements  of  restaurant  charges  for  Club  Boheme  to 

customers,  for  February  1950 

19.  Unpaid  bills  of  Club  Boheme 

20.  Canceled  checks  of  Club  Boheme 

21.  Bank  statements  and  canceled   checks  of  Greenacres 

Club 

22.  Six   books   of  deposit  slips  for   Greenacres  and   Club 

Boheme 

23.  Some  canceled  checks  and  bank  statements  of  Club 

Boheme  and  payroll-tax  account 

24.  Three  check-books  and  two  check-stub  records  of  both 

the  Club  Boheme  and  Greenacres __ 

25.  Miscellaneous  papers  of  Samuel  L.  Bratt,  Club  Green- 

acres, "The  Farm"  and  Club  Boheme 

26.  Sales-tax  reports  to  the  State  of  Florida  for  Greenacres 

Restaurant 

27.  Accounts  receivable  and  paid,  Club  Boheme,  1948-49 

season 

28.  Current  check  book  of  Club  Boheme 

29.  Seven  folders  on  payroll  taxes 

29A.  "The  Farm" 

29B.   Colonial  Inn 

29C.    Greenacres  and  Bishop 

29D.    Greenacres 

29E.    George  Scherman,  et  al 

29F.    Club  Boheme 

29G.    Combination  Greenacres  and  Bishop 

30.  Accident  reports,  Club  Boheme 

31A.    Accident  reports,  Club  Boheme 

3 1 B.    Accident  reports,  Club  Boheme 

32.  Lease  on  Club  Boheme 

33.  Contribution  folder,  Club  Boheme  and  charities,  etc 

34.  Realty  leases  for  Colonial  Inn 

35.  Show  contracts  for  Club  Boheme 

36.  Miscellaneous  correspondence  for  Colonial  Inn 

37.  Cabaret-tax  folder  for  Colonial  Inn 

38.  Minute  book  for  Bouches'  La  Boheme,  Inc 

39.  Miscellaneous  papers 

39A.  Canceled  checks,  vouchers,  and  bank  state- 
ments   

39B.  Income-tax  returns;  work  papers,  etc.,  re- 
lating to  income-tax  returns 

39C.  Fifteen  checks,  either  payable  to,  or  en- 
dorsed by,  or  bearing  notations  with  the 
name  "Alickey  Cohen" 

40.  Income-tax  file  from  1942  to  1944  for  Abe  Allenberg.. 

Letters  from  Andy  Pellino  on  the  stationery  of 
Henry  Pellino,  CPA,  New  York  City,  discussing 
AUen'berg's  taxes  in  connection  with  those  of 
Fi-ank  Erickson 

41.  Miscellaneous  papers  having  reference  to  the  Wofford 

Hotel 1 

42.  Miscellaneous   papers   concerning   Tropical   Park   and 

Gables  Racing  Association 

43.  Photostat  referring  to  partnership  in   Wofford  Hotel, 

dated  September  21,  1945 

'  Returned  to  witness. 
2  On  file  with  committee. 


Introduced 
at  i>age— 


16 

19 
19 
19 

20 

20 

20 

20 

20 

20 

21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
21 
22 
22 
22 
22 

60 

60 


60 
90 


90 
90 
90 
95 


Appears  on 
pape— 


VI 


CONTENTS 
f5CHEDULE  OF  EXHIBITS— Continued 


Number  and  summary  of  exhibits 


44.  Photostat  of  dooument,  dated  December  28,  1945,  re 

formation   of  partnership   between   Allenberg,    Car- 
fano,  and  Lorentzen 

45.  Photostat  of  document  dated  April  20,    1945,  giving 

Carfano  authority  to  sign  checks 

46.  Assignment,   dated    May   23,    1946,   submitted  during 

Allenberg's  testimony 

47.  Group  of  checks  signed  by  Allenberg 

48.  Photograph  of  Anthony  Carfano,  alias  "Little  Augie" 

Pisano 

49.  Photograph  of  Frank  Erickson 

50.  Photograph  of  Joe  Adonis 

51.  Photograph  of  Meyer  Lansky 

52.  Photograph  of  Vincent  Alo,  alias  "Jimmie  Blue  Eyes" 

53.  Photograph  of  Michael  Coppola,  alias  "Trigger  Mike".-. 

54.  Photograph  of  Julius  Kramer 

55.  Photograph    of    Benny    Karpf,    alias    "Benny    Kaye," 

alias  "Ben  Schwartz,"  alias  "Ben  Kahn" 

56.  Photograph  of  Frank  Livorsi 

57.  Photograph  of  Alfred  "Poagy"  Toriello 

58.  Photograph  of  Frank  Costello 

59.  Photograph  of  George  Angersola 

60.  Photograph  of  John  Angersola,  alias  "John  King" 

61.  Photograph  of  Romeo  Jos.  Civetta 

62.  Photograph  of  Tony  L.  Cibetta 

63.  Photograph  of  Carlo  F.  Civetta 

64.  Photograph  of  Jo.seph  Di  Carlo 

65.  Photograph  of  Sam  Di  Carlo,  alias  "Toto" 

66.  Photograph  of  Sam  "Gameboy"  Miller 

67.  Photograph  of  Fred  Angersola,  alias  "Fred  King" 

68.  Photograph  of  Abraham  "Longie"  Zwillman 

69.  Photograph  of  Joseph  Friedlander 

70.  Photograph  of  Nicholas  Delmore,  alias  "Delmar" 

71.  Photograph  of  William  Moretti,  alias  "Willie  Moore," 

alias  "William  Maretti" 

72.  Photograph  of  Angelo  "Gyp"  DeCarlo,  alias  "Di  Carlo," 

alias  "Edward  Meing" 

73.  Photograph  of  William  Riga,  alias  "Silent  Martin" 

74.  Photogra])h     of    Joseph     Massei,     alias     "Joseph     D. 

Massey" 

75.  Photograph  of  William   Gusto  Bischoff,  alias   "Harry 

Clark,"  alias  "Lefty  Clark" 

76.  Photograph  of  Louis  Ricciardi,  alias  "Louie  the  Wop"_ 

77.  Photograph  of  Joe  Burnstein,  alias  "James  Burnett"... 

78.  Photograph   of   Pete    Licavoli,   alias    "Peter    Moceri," 

alias  "Peter  Little" i 

79.  Photograph  of  Isadore  Blumenfield,  alias  "Kid  Cann". 

80.  Photograph  of  Martin  F.  Guilfoyle 

81.  Photograph  of  Charles  Fischetti 

82.  Photograph  of  Murray  "The  Camel"  Humphreys 

83.  Photograph  of  Martin  Accardo 

84.  Photograph  of  Paul  Viela,  alias  "Ricca" 

85.  Photograph  of  Max  Pollock,  alias  "Caldwell" 

86.  Phot  ograph  of  Ralph  Buglio 

87.  Photograph  of  Willie  Hccney 

88.  Photograph  of  Harry  Rosen,  alias  "Nig  Rosen,"  alias 

"Herman  Stromberg" 

89.  PhotoKraph  of  Samuel  Hoffman,  alias   "Cappy  Hoff- 

man," alias  "H.  Field" __    1    . 

90.  Photograph  of  David  Glass 

'  Rotunicd  to  witness. 
'  On  flic  with  committee. 


Introduced 
at  page- 


95 

95 

96 
96 

96 
96 
96 
97 
98 
99 
99 

99 
100 
100 
101 
102 
102 
103 
103 
103 
103 
103 
104 
104 
104 
105 
105 

105 

105 
105 

106 

106 
107 
107 

107 
107 
107 
108 
108 
108 
108 
108 
108 
108 

109 

109 
109 


CONTENTS 
SCHEDULE  OF  EXHIBITS— Continued 


VII 


Number  and  summary  of  exhibits 


91.  Photograph    of   Jack    Silver,    alias    "Herman    Gross," 

alias  "May  Rothman,  alias  "Frank  Rosso" 

92.  Photograph  of  Max  Segal,  alias  "Big  Shooey" 

93.  Photograph   of   Frank    Russo,    alias    "Tucker,"    alias 

"Paul  Carbo,"  alias  "Jimmie  the  Wop" 

94.  Photograph  of  Abe  Martin,  alias  "Abe  Glassman" 

95.  Photograph  of  John  Rosen,  alias  "PMwin  Goldberg," 

alias  "Irving  Greenberg" 

96.  Photograph  of  Nathan  Stromberg,  alias  "Nussie  Rosen". 

97.  Photograph  of  Joseph  Herman  Kriss 

98.  Photograph  of  Tony  Narcisi 

99.  Photograph   of    Frank    Matteo,    alias    "Matto,"   alias 

"Mattio,"  alias  "Frankie  Mendell" 

100.  Card  showing  Abe  Allenberg  as  honorary  deputy  sheriff 

101.  Courtesy  card  to  Abe  Allenberg  from  Florida  Sheriffs 

Association 

102.  Letter  to  Miami  Beach  Kennel  Club,  June  15,   1944, 

from  Abe  Allenberg 

103.  Letter  from  Jim  Ponzio  to  Abe  Allenberg,  dated  Sep- 

tember 27,  1948 

104.  Letter    from    George    Killion,    treasurer.    Democratic 

National  Committee,  Washington,  D.  C,  to  Abe 
Allenberg,  dated  May  6,  1947,  enclosing  receipt  for 
$2,500  contribution 

105.  Letter  to  Abe  Allenberg,  dated  August  4,  1948,  signed 

"Ralph" 

106.  Grand-jury  report,  spring  term,  Dade  County,  Fla 

107.  Clipping  from  Miami  Daily  News,  July  11,   1950,  en- 

titled "Covmty  Delays  Elisor  Conference" 

108.  Chart  furnished  by  Daniel  P.  Sullivan,  showing  major 

gambling  operations  in  Palm  Beach  and  Dade  County. 

109.  Chart  furnished  by  Daniel  P.  Sullivan,  acting  director. 

Crime  Commission  of  Greater  Miami,  showing  loca- 
tion of  major  gambling  operations  in  Broward  County. 

110.  Chart  furnished  by  Daniel  P.  Sullivan,  listing  guests 

at  WofTord,  Grand,  and  Sands  Hotels 

111.  Pictures  and  criminal  records  furnished  by  Daniel  P. 

Sullivan 

112.  Letter,  dated  July  19,  1949,  from  George  F.  Richard- 

son, Philadelphia  Police  Department  to  Daniel  P. 
Sullivan,  Crime  Commission  of  Greater  Miami, 
setting  forth  history  of  gambling  operations  in 
Philadelphia  and  Miami  areas 

113.  Photostat   of  deed   from   deed   book   2843,   page   494, 

showing  transfer  of  property  in  Coral  Gables  held  by 
John  Angersola  (King)   and  Alfred  Polizzi 

114.  Photostat    of    deed,    dated    July    29,     1946,    showing 

transfer  of  property  to  Arthur  Me  Bride  and  Alfred 
Polizzi 

115.  Photograph  of  subdivision  known  as  L^niversity  Estates 

of  Coral  Gables 

116.  General  ledger  relating  to  operations  of  Charles  and 

Sam  Friedman;  submitted  by  S.  M.  Perkins 

117.  Journal  relating  to  Charlie's  Inn,  a  night  club  operated 

by  Charles  and  Sam  Friedman;  submitted  by  S.  M. 
Perkins 

118.  Canceled  checks,  relating  to  operations  of  Charles  and 

Sam  Friedman,  from  January  1936,  through  1949; 
submitted  by  S.  M.  Perkins 

119.  Bank  statements  for  the  year  1949,  relating  to  the  opera- 

tions of  Charles  and  Sam  Friedman;  submitted  bv 
S.  M.  Perkins \ 


Introduced 
at  page — 


109 
109 

109 
109 

109 
110 
110 
110 

110 
117 

118 

118 

119 


119 

120 
140 

147 


154 
154 
154 
157 


{') 
(=) 

{') 
(') 
{') 

(.') 
732 

733 

733 

734 

734 

734 
735-740 

740 

741 
740 
742 


(') 


160 

743-745 

161 

746-747 

161 

748 

161 

{') 

175 

(») 

176 

(') 

176 

(') 

176 

0) 

1  Returned  to  witness. 

2  On  file  with  committee. 


VIII 


CONTENTS 
SCHEDULE  OF  EXHIBITS— Continued 


Number  and  summary  of  exhibits 


Introduced 
at  page- 


120.  Letter   from    Melvin    J.    Richard    to    Robert    Taylor, 

county  solicitor,  dated  June  15,  1950;  submitted  by 
Melvin  J.  Richard 

121.  Photostat  of  1947-48  license  of  S.  &  G.  Investment  Co.; 

submitted  bv  Melvin  J.  Richard 

122.  Photostat  of  1948-49  license  of  S.  &  G.  Investment  Co_ .  _ 

123.  Photostat  of  1949-50  license  of  S.  &  G.  Investment  Co_  _  _ 

124.  Photostat  of  card  attached  to  1947-48  license  of  S.  &  G. 

Investment  Co.,  signed  "Leo  Levitt  by  Ben  Cohen, 
attorney" 

125.  Records  submitted  by  Harry  G.  Taylor,  attorney,  iden- 

tified in  memorandum  submitted  to  Mr.  Kiley,  in- 
vestigator  

126.  Tax  returns,   bank  checks,   bank  statements,   various 

instruments  of  ownership  of  property,  mortgages, 
records  of  tax  paid:  Harold  Salvey  and  S.  &  G. 
Syndicate 

127.  Winter-term,  grand-jury  report,   1948,   Dade  Countv, 

Fla :_- 

128.  Correspondence  between  sheriff  Sullivan  and  Law  En- 

forcement League  of  Dade  County;  also  letter  from 
Tom  Watson,  attorney  general,  State  of  Florida 

129.  Letter  from  Richard  Hunt,  attorney,  to  Sheriff  Sullivan, 

Opinion    from    the    supreme    court    of    the    January 
term,  dated  January  17,  1950 

130.  Statistics  from  Sheriff  Sullivan's  office,   Dade  County, 

Fla.,  for  years  1945  through  1949 

131.  Statistics  from  Sheriff  Sullivan's  office,  Dade  County, 

Fla.,  for  period  from  February  1,  1950,  through  March 
15,  1950 

132.  Statistics  from  Sheriff  Sullivan's  office,  Dade  County, 

Fla.,  for  January  1950 

133.  Records  of  Sheriff  Sullivan's  predecessors  in  office,  1943 

and  1944 

134.  Photograph  of  raid,  showing  racing  wire  set-up 

135.  Record  of  raids  of  Sheriff  Sullivan's  office,  for  1950 

136.  Copy  of  bill  for  declaratory  decree;  also  opinion  and 

order  by  circuit  court 

137.  Photographs  and  criminal  records,  submitted  by  Sheriff 

Sullivan 

138.  Home  of  John  Angersola 

139.  Home  of  Sam  Taran 

140.  Home  of  Ralph  Buglio 

141.  Home  of  Martin  Leo  Accardo 

142.  Home  of  Charles  Fischetti 

143.  Home  of  Tony  Accardo 

144.  Letter  from  circuit  court  clerk,  Sevier  County,  Tenn., 

to  Sheriff  Sullivan,  regarding  Jimmie  Sakelaris 

145.  Record  of  Sheriff  Sulhvan's  office  for  the  second  quar- 

ter, 1946 

146.  Set  of  books  for  Charlie's  Inn,  Miami  Beach,  Fla.,  sub- 

mitted by  S.  M.  Perkins 

147.  Income-tax  reports,  work  sheets,  and  papers  for  1936 

through  1949  for  Charles  and  Sam  Friedman;  sub- 
mitted by  S.  M.  Perkins 

148.  Bank  statements  and  canceled  checks,  through  June 

1950,  for  Charlie's  Inn 

149.  Paper  wrapped  in  cellophane,  submitted  by  Abe  Gold- 

man, noting  telephone  numbers 

1  Returned  to  witness. 
»  On  file  with  committee. 
'  Written  into  record. 


220 

224 
224 
224 


224 
232 

234 

244 

244 
247 

247 

248 

249 

249 

252 
253 
253 

262 

263 

263 
263 
264 
264 
264 
264 

269 

270 

283 

283 
283 

288 


CONTENTS 
SCHEDULE  OF  EXHIBITS— Continued 


IX 


Number  and  summary  of  exhibits 


Introducod 
at  page- 


Appears  on 
page- 


ISO. 

151. 

152. 

153. 

154. 

155. 

156. 

157. 

158. 

159. 

160. 

161. 

162. 

163. 
164. 

165. 
166. 
167. 
168. 
169. 
170. 

171. 
172. 
173. 


Letter  from  Gov.  Fuller  Warren  to  Sheriff  Sullivan, 
asking  cooperation  of  sheriff's  office  with  Mr.  Crosby, 
special  investigator  for  the  Governor  of  the  State  of 
Florida 

Photograph  of  Sheriff  Sullivan's  house  at  1803  North- 
west Sixth  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2321  South- 
west Fourth  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2327  South- 
west Fourth  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2370  South- 
west Fourth  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2338  South- 
west Fifth  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2620  South- 
west Ninth  Street 

Pliotograph  of  Sheriff  Sullivan's  house  at  2332  South- 
west Fifth  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2236-2238 
Southwest  First  Street 

Photograph  of  Sheriff  Sullivan's  house  at  2240-2242 
Southwest  First  Street 

Photograph  of  Sheriff  Sullivan's  house  at  261  South- 
west Thirtieth  Road 

Photograph  of  Sheriff  Sullivan's  house  at  2485  South- 
west Fourth  Street 

Income-tax  returns  of  Sheriff  Sullivan,  from  1940 
through  1949 

Financial  statements  of  Sheriff  Sullivan,  1944  and  1950_ 

List  of  contributions  collected  by  Abe  Allenberg  for 
Warren  Campaign  for  Governor 

Work  sheets,  prepared  by  Harold  G.  Robinson,  asso- 
ciate counsel,  showing  contributions  by  S.  &  G. 
Syndicate  to  police  and  firemen's  organizations 

Work  sheets,  prepared  by  Harold  G.  Robinson,  asso- 
ciate counsel,  showing  payments  made  by  S.  &  G. 
Syndicate  for  "regular"  wire  service 

Work  sheets,  prepared  bj^  Harold  G.  Robinson,  asso- 
ciate counsel,  showing  payments  made  by  S.  &  G. 
Syndicate  for  "special"  wire  service 

Work  sheets,  prepared  by  Harold  G.  Robinson,  asso- 
ciate counsel,  showing  gross  receipts  for  S.  &  G. 
Syndicate 

List  of  original  stockholders  in  Orange  Park  Kennel 
Club  and  Jacksonville  Kennel  Club;  submitted  by 
William  H.  Johnston 

First  National  Bank,  Aberdeen,  Md.,  deposit  ticket, 
dated  Apr.  6,  1945,  of  Tredick  Ford,  payment  on 
mortgage,  to  the  account  of  Mrs.  —  Mitchell,  showing 
deposit  of  $2,000 

Ledger  sheets,  from  First  National  Bank,  Aberdeen, 
Md.,  of  Mrs.  May  H.  Ford  and  Tredick  Ford, 
Aberdeen ,  Md 

Photostats  of  agreement  of  sale  and  deed,  covering  204 
west  Bel  Air  Avenue,  Aberdeen,  Md.,  signed  by 
Ethel  G.  Sullivan  and  James  Sullivan 

Photostats  of  three  checks,  signed  by  Thomas  A.  Rice, 
payable  to  the  order  of  Gladvs  F.  Neu,  in  amounts 
of  $5,000,  $5,000,  and  $50,  respectively 


293 

302 

303 

303 

304 

304 

304 

304 

304 

304 

304 

304 

306 
331 

484 
576 
595 
595 
595 
633 

690 
690 
704 
705 


0) 

782 

782 

783 

783 

784 

784 

785 

785 

786 

786 

787 

0) 
787-788 

(') 
788 
789 
790 
790 
791-792 

(0 

(') 

793-795 
796-797 


*  Returned  to  witness. 
2  On  file  with  committee. 


X  CONTENTS 

SUPPLEMENTAL  DATA 

Page 

Letter  to  Rudolph  Halley,  chief  counsel,  dated  August  8,  1950,  from  Hon. 
Fuller  Warren,  Governor  of  the  State  of  Florida,  enclosing  clipping  from 
Fort  Myer  News-Press 798-801 

Letter  to  Rudolph  Halley,  chief  counsel,  dated  August  8,  1950,  from  Hon. 
Fuller  Warren,  Governor  of  the  State  of  Florida,  enclosing  ITebruary  18 
statement  by  Governor  Warren 801-802 

Letter  to  Rudolph  Halley,  chief  counsel,  dated  August  9,  1950,  from  Hon. 
Fuller  Warren,  Governor  of  the  State  of  Florida,  enclosing  August  7 
order  to  sheriffs  of  Florida 802 

Letter  to  Rudolph  Halley,  chief  counsel,  dated  August  14,  1950,  from  Hon. 
Fuller  Warren,  Governor  of  the  State  of  Florida,  enclosing  February  21 
statement  by  Governor  Warren 802-803 

Letter  to  Senator  Kefauver,  chairman,  dated  November  6,  1950,  from  Max 
Marmorstein,  Cleveland,  Ohio 803-805 


INVESTIGATION  OF  ORGANIZED  CRIME  IN  INTERSTATE 

COMMERCE 


FRIDAY,   MAY   26,    1950 

United  States  Senate, 
Special  Committee  To  Investigate 
Organized  Crime  in  Interstate  Commerce, 

Miami^  Fla. 

The  committee  met  in  the  courtroom  of  the  United  States  district 
court,  Miami,  Fla.,  on  May  26,  1950,  Senator  Estes  Kefauver,  chair- 
man, presiding. 

Present :  Senators  Kefauver  and  Hunt. 

Also  present :  Rudolph  Halley,  chief  counsel. 

The  Chairman.  The  committee  will  come  to  order.  For  the  record 
this  is  the  select  committee  of  the  United  States  Senate  for  the  pur- 
pose of  investigating  interstate  criminal  transactions,  appointed  by 
the  President  of  the  Senate  pursuant  to  Senate  Resolution  202. 

Mr.  Halley.  As  a  courtesy  to  an  attorney,  Mr.  Robert  C.  Ward,  who 
represents  Mr.  Robert  Parker,  an  employee  of  Charles  B.  Costar  &  Co., 
certified  public  accountants,  let  me  state  this  for  the  record :  A  subpena 
has  been  served  on  ]Mr.  Parker,  but  he  claims  that  he  cannot  produce 
certain  records  in  the  absence  of  his  employers.  He  is  here  with 
counsel  and,  since  the  next  witness  is  going  to  take  a  considerable 
amount  of  time,  I  will  ask  the  committee  as  a  courtesy  to  listen  to 
him  now. 

The  Chairman.  All  right. 

TESTIMONY  OF  ROBERT  PARKER,  ACCOMPANIED  BY  ROBERT  C. 

WARD,  ATTORNEY 

Mr.  Halley.  Will  you  state  your  name  and  address  for  the  record, 
Mr.  Parker? 

Mr.  Parker.  Robert  Parker,  office  address  903  First  National  Bank 
Building,  Miami,  Fla.  My  home  address  is  2170  Northwest  Fifty- 
eighth  Street,  Miami,  Fla. 

JNIr.  Halley.  Mr.  Ward,  you  are  counsel  for  Mr.  Parker? 

Mr.  Ward.  Yes,  sir. 

Mr.  Halley.  What  is  your  full  name  and  address  ? 

Mr.  Ward.  Robert  C.  Ward,  1229  du  Pont  Building,  Miami,  Fla. 

The  Chairman.  Do  you  solemnly  swear  that  the  testimony  you  will 
give  this  committee  will  be  the  truth,  the  whole  truth,  and  nothing  but 
the  truth,  so  help  you  God  ? 

Mr.  Parker.  I  do. 


2  ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  Halley.  Mr.  Parker,  you  received  a  subpena  to  produce  certain 
records. 

Mr.  Parker.  That  is  right. 

Mr.  Halley.  And  they  are  records  of  Charles  B.  Costar  &  Co.,  certi- 
fied public  accountants? 

Mr.  Parker.  Well,  I  don't  know  whether  we  have  all  of  those  records 
or  not. 

Mr.  Halley.  Are  you  an  employee  of  Charles  B.  Costar  &  Co.  ? 

Mr.  Parker.  Yes. 

Mr.  Halley.  What  is  your  position  ? 

Mr.  Parker.  Well,  I  am  more  or  less  in  charge  in  the  absence  of 
Mr.  Costar. 

Mr.  Halley.  Are  you  in  charge? 

Mr.  Parker.  I  am  in  charge  of  the  procedure  of  the  work,  with 
another  man. 

Mr.  Halley.  Who  is  the  other  gentleman? 

Mr.  Parker.  Edward  J.  Diedriech. 

Mr.  Halley.  Is  he  a  partner  of  Mr.  Costar  ? 

Mr.  Parker.  No. 

Mr.  Halley.  Is  he  associated  with  him? 

Mr.  Parker.  He  is  an  employee,  the  same  as  I  am. 

Mr.  Halley.  In  their  absence  you  are  in  charge  ? 

Mr.  Parker.  That  is  right. 

Mr.  Halley.  You  received  a  subpena  to  bring  certain  records  ? 

Mr.  Parker.  That  is  right. 

INIr.  Halley.  Have  you  looked  to  see  if  those  records  are  on  the 
premises  ? 

Mr.  Parker.  No,  sir ;  like  I  say,  I  am  in  charge  of  the  way  the  flow 
of  work  goes  on  but  I  don't  think  I  am  in  charge  of  the  office  to  the 
extent  that  I  could  take  any  of  the  records  off  or  put  any  back  other 
than  on  a  particular  job. 

Mr.  Halley.  You  received  the  subpena? 

Mr.  Parker.  Yes. 

Mr.  Halley.  Is  there  anything  you  would  like  to  say  about  it,  Mr. 
Ward? 

Mr.  Ward.  In  the  absence  of  Mr.  Costar,  as  Mr.  Parker  stated, 
gentlemen,  he  is  just  an  employee.  Those  records  that  you  are  after 
we  are  willing  to  give  to  the  committee  but  until  such  time  as  Mr. 
Costar  is  back  Mr.  Parker,  as  he  says,  doesn't  know  where  all  of  the 
records  are  or  if  we  have  them  all.  Mr.  Costar  is  on  his  way  down  here 
from  Washington  at  the  present  time,  I  believe. 

Mr.  Halley.  When  will  he  arrive? 

Mr.  Ward.  His  office  doesn't  know.  He  was  in  Johns  Hopkins 
getting  a  physical  check-up  and  he  said  he  would  be  in  Miami  some- 
time this  week  end,  and  at  that  time  we  would  be  perfectly  willing 
to  produce  the  records. 

Mr.  Halley.  May  I  go  off  the  record? 

The  Chairman.  Yes. 

(Discussion  off  record  by  permission  of  the  chairman.) 

The  Chairman.  What  is  Charles  B.  Costar  &  Co.,  a  partnership  or 
corporation  ? 

Mr.  Parker.  It  is  a  partnership.  There  is  no  such  thing  as  a  cor- 
poration in  the  accounting  business;,  no  more  than  there  is  in  the  law 
business. 


ORGANIZED    CRIME    IN    INTERSTATE    OOIVOIERCE  3 

The  Chairmax.  Are  you  the  highest  one  in  command  in  the  absence 
of  Mr.  Cost ar? 

Mr.  Parker.  No;  Mr.  Diedriech  is. 

The  Chairman.  Where  is  he  ? 

Mr.  Parker.  He  is  out  of  the  office  and  has  been  out  of  the  office  all 
day  working. 

The  Chairman.  Is  the  subpena  addressed  to  Mr.  Diedriech  too? 

Mr.  Halley.  Yes.  but  the  office  has  been  unable  to  produce  him.  Mr. 
Parker  has  been  in  charge  and  is  the  only  one  in  the  office  today. 

The  Chairman.  You  understand  that  it  is  not  a  matter  of  whether 
Mr.  Costar  is  willing  for  the  records  to  be  produced.  We  have  sub- 
penaed  the  records  and  if  the  records  are  there,  we  want  them. 

Mr.  Parker.  Let  me  put  it  this  way :  It  is  not  a  matter  of  routine 
to  me  in  the  office  if  I  do  something  I  should  not  do.  I  have  to  work, 
you  know.  I  don't  believe  it  is  within  the  realm  of  my  job  to  do  that^ 
otherwise  I  would  be  willing  to  do  so. 

The  Chairman.  It  is  a  subpena  of  the  United  States  Senate  that 
has  been  served  on  you.  We  do  not  want  to  give  you  any  trouble,  but 
this  is  a  select  committee  of  the  Senate  and  we  have  a  right  to  get 
those  records.  You  are  the  man  in  charge  of  the  office  upon  whom 
the  subpena  has  been  served,  so  it  is  not  a  question  of  whether  Mr. 
Costar  wants  you  to  do  it.  Unless  we  can  be  assured  that  the  records 
will  be  availal)le,  I  think  we  had  better  instruct  Mr.  Parker  to  have 
them  here  at  9  o'clock  in  the  morning,  subject  to  a  citation  of  contempt 
b}^  tliis  committee  if  he  doesn't  produce  them. 

Mr.  Parker.  Suppose  I  find  that  instead  of  an  armful  we  have  a 
truckload  of  them,  what  assistance  will  I  have  in  getting  them  over 
here? 

The  Chairman.  We  will  assist  you  in  getting  them  over  here. 

Mr.  Ward.  Will  it  be  agreeable  to  have  Mr.  Parker  check  the  rec- 
ords ?  He  doesn't  know  at  the  present  time  if  the  records  or  all  of 
them  are  over  there. 

Mr.  Halley.  The  records  are  there.  You  are  probably  misin- 
formed. He  advised  our  investigator  what  records  are  there,  and 
we  know  what  records  are  there. 

Mr.  Parker.  That  is  wrong. 

Mr.  Halley.  Mr.  Parker  so  advised  the  man  who  served  the  sub- 
pena on  him.  I  think  now  that  you  are  simply  delaying  matters.  The 
objection  is  not  substantial  at  all. 

The  Chairman.  When  was  this  subpena  served  upon  you  ? 

Mr.  Parker.  About  12  o'clock  today. 

The  Chairman.  Have  you  made  any  effort  to  find  the  records? 

Mr.  Parker.  When  they  brought  the  subpena  there  I  checked  over 
the  names  with  the  secretary  and  she  checked  off  the  names  of  the 
ones  which  to  her  knowledge  we  never  did  any  work  for  and  that  is 
what  I  informed  the  investigator,  the  nature  of  the  records  we  had 
and  which  ones  we  had  done  no  work  for. 

Mr.  Halley.  The  inference  being  that  you  had  done  work  for 
others  ? 

Mr.  Parker.  Yes,  but  that  does  not  necessarily  mean  that  w^e  have 
any  records. 

Mr.  Halley.  We  are  simply  wasting  time.  Go  back  and  check  to 
see  what  you  have  and  produce  them  pursuant  to  the  committee's 
instructions. 


4  ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  Ward.  At  9  o'clock? 

The  Chairman.  If  you  get  them  together  in  that  time  without  any 
undue  liardship. 

Mr.  Ward.  We  can  inform  you  in  a  little  while  as  to  just  what  is 
there. 

The  Chairman.  Suppose  you  let  us  know  as  soon  as  you  can.  As 
soon  as  Mr.  Parker  can  find  out  just  what  he  has  got  in  the  office,  you 
can  inform  us  over  here. 

Mr.  Parker.  Let  me  explain  one  thing.  When  records  get  so  old 
they  are  transferred  to  storage.  As  to  those  in  storage,  I  don't  have 
any  idea  what  they  would  be.  I  don't  think  we  can  get  them  by  9 
o'clock.    If  they  are  5  or  6  years  old  they  go  in  storage. 

The  Chairman.  You  can  let  us  know  what  the  situation  is  by  5  :  30 
today  ? 

Mr.  Parker.  Yes;  I  can  give  you  an  idea  of  what  we  have  in  the 
office. 

The  Chairman.  We  will  expect  to  hear  from  you  by  5 :  30  today. 
Thank  3^011. 

TESTIMONY  OF  BEN  EISEN  AND  SEYMOUR  EISEN 

Mr.  Halley.  Wliat  is  your  name  and  address^ 

Mr.  EisEN.  Ben  Eisen,  1308  Harrison  Street,  Hollywood,  Fla. 

Mr.  Halley.  This  gentleman  is  your  brother? 

Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  State  your  name  and  address  for  the  record. 

Mr.  Seymour  Eisen.  jMy  name  is  Seymour  Eisen;  my  address  is 
Hollywood,  Fla. 

The  Chairman.  Do  you  and  each  of  you  solemnly  swear  that  the 
testimony  you  will  give  this  committee  will  be  the  truth,  the  whole 
truth,  and  nothing  but  the  truth,  so  help  you  God? 

Mr.  Ben  Eisen.  I  do, 

Mr.  Seymour  Eisen.  I  do. 

Mr.  Halley.  Mr.  Eisen,  are  you  an  accountant  ? 

Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  Do  you  have  a  certified  public  accountant's  license  in 
the  State  of  Florida  ? 

Mr.  Ben  Eisen.  No,  sir.  I  have  no  firm  at  all.  I  have  been  here 
since  1934. 

Mr,  Halley.  You  operate  as  an  individual  ? 

Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  Are  you  a  certified  public  accountant  ? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Where  is  your  office  ? 

Mr.  Ben  Eisen.  I  have  no  office. 

Mr.  Halley.  Where  do  you  work? 

Mr.  Ben  Eisen.  I  worked  at  Gulfstream  and  the  Hollywood  Ken- 
nel Club.  Since  1945  or  1946  I  have  practically  divorced  myself  from 
much  of  the  work  at  Greenacres,  Boheine,  and  Colonial  Inn  and  have 
given  most  of  my  time  to  Hollywood  Inn  and  Gulfstream. 

JSIr.  Halley.  A  subpeiui  was  served  upon  you  today? 

Mr  Ben  Eisen.  Yes. 

Mr.  Halley.  Pursuant  to  that  subpena  have  you  brought  certain 
records  here? 


ORGANIZED    CR'IME    IN    INT-ERSTATE    COMMERCE  5 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  Would  you  care  to  produce  those  records  and  describe 
tliem  '^ 

Mr.  Ben  Eisen.  I  have  quite  a  few  records,  sir. 

Mr.  Halley.  What  records  have  you  brought? 

The  Chairman.  Let's  get  them  up  here  and  see  what  we  have  got. 

Mr.  Ben  Eisen.  One  of  your  men  was  up  at  the  place  and  took 
whatever  he  thought  that  he  wanted.  If  there  is  anything  else  he 
wants,  he  can  come  up  and  we  will  be  glad  to  give  him  anything  else 
he  wants. 

Mr.  Halley.  Do  you  work  with  Mr.  Ben  Eisen? 

Mr.  Seymour  Eisen.  Not  under  his  .supervision. 

Mr.  Halley.  Do  you  work  for  the  corporation  ? 

Mr.  Seymour  Eisen.  I  work  independently. 

Mr.  Halley.  In  the  same  office? 

Mr.  Seymour  Eisen.  No.    I  have  no  office. 

Mr.  Halley.  You  also  work  at  the  Gulf  stream  Race  Track? 

Mr.  Seymour  Eisen.  I  work  at  the  Gulfstream  Race  Track  as  pay- 
roll clerk. 

Mv.  Halley.  Where  else  do  you  work  ? 

Mr.  Seymour  Eisen.  Club  Boheme.    I  use  the  office  of  the  Colonial. 

Mr.  Halley.  Do  you  use  the  office  of  Club  Boheme,  too? 

Mr.  Seymour  Eisen.  No.    It  is  not  suitable. 

Mr.  Halley.  Will  you  go  ahead  and  describe  the  books? 

Mr.  Seymour  Eisen.  I  have  here  the  Greenacres  Casino  summary, 
1949-50 ;  Greenacres  1950  payroll,  Club  Boheme  1950  payroll,  Boheme 
Casino,  1948-49  and  1949-50  seasons;  Greenacres  cash  book,  1949-50 
and  Club  Boheme  cash  book  for  1948-49  and  1949-50. 

Mr.  Halley.  Mr.  Chairman,  I  offer  into  evidence  as  exhibit  Nos.  1 
through  6,  respectively,  the  books  that  have  just  been  produced. 

The  Chairman.  They  will  be  accepted  as  exhibit  Nos.  1  through  6 
and  will  be  made  a  part  of  the  record. 

(Greenacres  Casino  summary  1949-50,  ledger,  marked  "Exhibit  1"; 
Greenacres  payroll  ledger,  1950,  marked  "Exhibit  2";  Club  Boheme 
payroll  ledger,  1950,  marked  "Exhibit  3" ;  Boheme  Casino  1948-49  and 
1949-50  seasons,  ledger,  marked  "Exhibit  4";  Greenacres  cash  book, 
1949-50,  marked  "Exhibit  5";  and  Club  Boheme  cash  book,  1948-49 
and  1949-50,  marked  "Exhibit  6."  Exhibits  later  returned  to  witness 
after  analysis  by  committee.) 

Mr.  Halley.  Will  you  describe  the  nature  of  the  business  of  the 
Club  Boheme? 

The  Chairman.  Are  these  boys  brothers  ? 

Mr.  Ben  Eisen.  Yes,.  The  Club  Boheme  is  a  restaurant  and  night 
club. 

Mr.  Halley.  Does  it  have  any  gambling  operations  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  Will  you  describe  the  gambling  operations  there  ? 

Mr.  Ben  Eisen.  Well,  I  don't  know  how  to  begin.  Can  you  ask 
specific  questions  ? 

Mr.  Halley.  Yes.    Is  there  a  crap  game  at  the  Club  Boheme  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  Roulette  wheels  up  there  ? 

Mr.  Ben  Eisen.  Yes. 


6  ORG'ANIZE'D   CRIME    IN   INTEESTATE    COOVEMER'CE 

Mr.  Hallet.  Are  there  various  card  games  and  games  of  chance 
operating  there  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  What  are  the  games  of  chance  operated  by  Club 
Boheme  ? 

Mr.  Ben  Eisen.  That's  all. 

Mr.  Halley.  Is  tliere  any  horse-race  betting  at  the  Club  Boheme  ? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  The  gambling  takes  place  in  rooms  other  than  the, 
restaurant ;  is  that  correct  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  In  the  restaurant  there  is  music  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  And  entertainment? 

Mr.  Ben  Eisen.  Yes,  sir. 

]VIr.  Halley.  In  the  form  of  a  night  club  show ;  is  that  right  ? 

Mr.  Ben  Eisen.  Yes,  sir, 

Mr.  Halley.  Is  the  Club  Boheme  open  to  the  public  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  Anyone  can  go  to  the  Club  Boheme  and  have  dinner 
and  see  the  show ;  is  that  correct  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  And  then  can  gain  entrance  to  the  other  rooms  in 
which  they  can  gamble  ? 

Mr.  Ben  Eisen.  I  don't  know  what  the  procedure  is.  I  never  was 
there  to  observe  it. 

Mr.  Halley.  You  have  been  there  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  The  people  could  freely  walk  in  and  out  of  the  gam- 
bling rooms  ? 

Mr.  Ben  Eisen.  Yes. 

]Mr.  Halley.  Where  is  the  Club  Boheme  located  ? 

Mr.  Ben  Eisen.  It  is  located  on  Koute  AlA,  Hallandale,  Fla. 

Mr.  Halley.  Do  you  have  records  indicating  the  ownership  of  the 
Club  Boheme? 

Mr.  Ben  Eisen.  Not  in  my  possession.  There  are  tax  returns  which 
would  indicate  that. 

Mr.  Halley.  Who  prepared  the  tax  returns? 

Mr.  Ben  Eisen.  Well,  the  tax  returns  were  prepared  by — I  sum- 
marized the  figures  and  the  tax  returns  were  prepared  by  George 
Goldstein,  a  New  Jersey  accountant. 

Mr.  Halley.  Do  you  know  Goldstein  Bros.  ? 

Mr.  Ben  Eisen.  No,  sir.     They  are  in  Newark,  N.  J. 

Mr.  Halley.  Is  that  Goldstein  &  Goldstein? 

Mr.  Ben  Eisen.  I  don't  know. 

Mr.  Halley.  Do  you  have  any  records  indicating  the  ownership  of 
the  Club  Boheme? 

Mr.  Ben  Eisen.  Not  here. 

Mr.  Halley.  Do  you  have  them  in  your  ofRce  or  your  home  or  at 
the  Club  Boheme? 

Mr.  Ben  Eisen.  I  reiterate  that  the  ownership,  as  far  as  I  know^ 
is  what  is  on  the  tax  returns  themselves.     There  are  no  others. 

Ml'.  Halley.  Have  you  ever  seen  the  tax  returns? 

Mr.  Ben  Eisen.  Yes. 


ORGANIZED    CRIME    IN    INTE'RSTAT'E    COMMERCIE  7 

Mr.  Halley.  Do  you  recall  the  ownership  as  shown  on  the  tax 
returns  ? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Where  are  the  tax  returns  ? 

Mr.  Seymour  Eisen.  I  have  them  here. 

Mr.  Halley.  Can  you  produce  them  now  ? 

Mr.  Seymour  Eisen.  Yes. 

Mr.  Ben  Eisen.  He  don't  know  whether  you  mean  the  property 
itself  or  what.     You  see,  sir,  the  property  is  owned  by  somebody  else. 

Mr.  Halley.  You  have  just  handed  me  a  document  which  appears 
to  be  a  copy  of  a  partnership  return  of  income  for  1948  for  the  Club 
Boheme.     I  offer  this  into  evidence. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record 
as  exhibit  No.  7. 

(Copy  of  income-tax  return  of  Club  Boheme,  1948,  marked  "Exhibit 
No.  7,"  later  returned  to  witness  after  analysis  by  committee.) 

Mr.  Halley.  Where  did  you  get  the  information  for  this  tax 
return  ? 

Mr.  Ben  Eisen.  The  information  was  derived  from  the  books  and 
records  of  the  Club  Boheme. 

Mr.  Halley.  In  your  possession  ? 

Mr.  Ben  Eisen.  No,  sir ;  at  the  Club  Boheme. 

Mr.  Halley.  Are  they  now  at  the  Club  Boheme? 

Mr.  Ben  Eisen.  They  are  right  here. 

Mr.  Halley.  This  return  shows  certain  names  which  I  will  recite 
for  the  record:  Frank  Shireman,  Samuel  L.  Bratt,  Claude  Litteral, 
Meyer  Lansky,  Jack  Lansky,  and  George  Sadlo,  which  shows  a  total 
distribution  there  of  $205,470.77.  Can  you  explain  the  manner  in 
which  the  distributive  share  of  each  of  these  persons  was  arrived  at? 

Mr.  Ben  Eisen.  Well,  I  could  figure  it  out  in  a  minute  for  you  if 
you  will  give  me  a  little  time.  I  thought  the  percentages  would  be  on 
here  but  I  don't  see  them. 

Mr.  Halley.  Do  you  have  any  other  records  indicating  the  per- 
centage ownership  of  each  of  these  individuals  ? 

Mr.  Ben  Eisen.  It  should  be  in  here. 

Mr.  Halley.  What  other  tax  returns  do  you  have  here  ? 

Mr.  Ben  Eisen.  What  tax  returns  do  I  have  to  give  to  you  and  what 
do  you  want  ? 

Mr.  Halley.  We  want  all  that  you  have. 

Mr.  Ben  Eisen.  Shall  I  go  back  a  distance? 

Mr.  Halley.  Yes.     Go  ahead  and  tell  the  committee  what  you  have. 

Mr.  Ben  Eisen.  Well,  I  have  Mr.  Lansky's  tax  returns  that  go  all 
the  way  back  as  far  as  I  can  remember.     Here  they  are. 

Mr.  Halley.  Thev  are  in  a  folder  marked  "Jack  Lansky,  Federal 
returns,  1936  to  1948"? 

Mr.  Ben  Eisen.  1949  is  in  there,  too. 

Mr.  Halley.  I  offer  this  entire  folder  in  evidence  as  exhibit  No.  8. 

The  Chairman.  It  will  be  received  in  evidence  as  exhibit  No.  8 
and  made  a  part  of  the  record. 

Mr.  Halley.  What  other  tax  returns  do  you  have? 

Mr.  Ben  Eisen.  Can  I  ask  you  something  off  the  record  ? 

Mr.  Halley.  It  will  go  on  eventually  even  if  you  go  off  the  record. 
We  cannot  make  any  commitments. 

68958 — 50 — pt.  1 2 


8  lORG'ANIZE'D    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  Ben  Eisen.  I  am  not  asking  for  anything.  All  I  want  to  know 
is  to  make  sure  that  we  will  have  these  tax  returns  again  so  that  I 
will  be  in  a  position  to  get  the  information  for  the  next  returns. 

The  Chairman.  That  is  assured. 

(Folder  previously  produced  and  admitted  in  evidence  as  exhibit 
No.  8  contains  Jack  Lansky  Federal  returns,  1936  to  1949,  also  Louisi- 
ana and  New  York  returns,  and  was  later  returned  to  witness  after 
analysis  by  committee.) 

Mr.  Halley.  The  next  exhibit  offered  is  a  folder  of  income-tax 
returns  marked  "George  Sacllo,"  which  folder  is  offered  in  evidence 
as  exhibit  No.  9. 

The  Chairman.  It  will  be  received  in  evidence  as  exhibit  No.  9  and 
made  a  part  of  the  record. 

(Folder  containing  income-tax  returns  of  George  Sadlo  marked 
"Exhibit  No.  9."  Later  returned  to  witness  after  analysis  by  com- 
mittee. ) 

Mr,  Halley.  The  next  folder  is  marked  "Income-tax  returns  of  S.  L. 
Bratt,"  which  is  offered  into  evidence  as  exhibit  No.  10. 

The  Chairivian.  It  will  be  received  in  evidence  and  made  a  part  of 
the  record  as  exhibit  No.  10. 

(Said  folder  of  income-tax  returns  of  S.  L.  Bratt  marked  "Exhibit 
No.  10."     Later  returned  to  witness.) 

Mr.  Halley.  The  next  folder  is  marked  "Income-tax  returns  of 
Vincent  Alo,"  which  is  offered  in  evidence  as  exhibit  No.  11. 

The  Chairman.  It  will  be  received  in  evidence  and  made  a  part  of 
the  record  as  exhibit  No.  11. 

(Said  folder  of  income-tax  returns  of  Vincent  Alo  marked  "Exhibit 
No.  11."    Later  returned  to  witness.) 

Mr.  Halley.  The  next  is  a  folder  containing  tax  returns  of  William 
and  Ida  Bischoff,  which  is  offered  in  evidence  as  exhibit  No.  12. 

The  Chairman.  It  will  be  received  as  exhibit  No.  12  and  made  a  part 
of  the  record. 

(Said  folder  containing  tax  returns  of  William  and  Ida  Bischoff 
marked  "Exhibit  No.  12."     Later  returned  to  witness.) 

Mr.  Halley.  The  next  folder  is  a  folder  containing  income-tax 
returns  of  Colonial  Inn,  which  is  offered  in  evidence  as  exhibit  No.  13. 

The  Chairman.  It  will  be  received  in  evidence  and  made  a  part  of 
the  record  as  exhibit  No.  13. 

(Said  folder  containing  income-tax  returns  of  Colonial  Inn  marked 
"Exhibit  No.  13."     Later  returned  to  witness.) 

Mr.  Halley.  Mr.  Ben  Eisen,  will  you  state  what  the  Colonial 
Inn  is? 

Mr.  Ben  Eisen.  The  Colonial  Inn  is  Minsky's  Burlesque  now. 

Mr.  Halley.  Is  it  a  place  which  is  now  used  as  a  burlesque  house  ? 

Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  What  was  it  formerly  ? 

Mr.  Ben  Eisen.  Niglit  club  and  casino. 

Mr.  Halley.  Gambling  casino? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  When  did  it  cease  to  be  a  gambling  casino  and  be- 
come a  burlesque  liouse? 

Mr.  Ben  Eisen.  I  believe  the  return  you  have  there  in  your  hand  is 
the  last  one. 


ORGANIZED   CRIME    IN   INTE'RSTAT'E    COMMERCE  9 

Mr.  Halley.  By  the  return  I  hold  in  my  hand  you  refer  to  the  1948 
return  ? 

Mr.  Bex  Eisex.  Yes,  sir. 

Mr.  Halley.  Were  the  operations  of  the  Colonial  Inn  transferred 
to  some  other  place? 

Mr.  Bex  Eisex.  To  the  Club  Boheme.  The  same  shareholders  run 
the  Club  Boheme — not  all  the  same  but  a  majority  of  them.  You  can 
check  the  names  on  the  1948  return  with  those  on  the  return  of  the 
Club  Boheme,  and  you  can  probably  see  the  name  as  shown. 

Mr.  Halley.  What  is  the  Greenacres  Club  ? 

Mr.  Bex  Eisex.  Restaurant  and  casino. 

Mr.  HxVLLEY.  Is  Greenacres  the  same  as  the  Colonial  Inn  ? 

Mr.  Bex  Eisex.  No,  sir. 

Mr.  Halley.  Is  Greenacres  still  operating  as  a  gambling  casino 
and  restaurant  ? 

Mr.  Bex  Eisex.  It  is  closed  now. 

Mr.  Halley.  Was  it  operating  during  the  past  winter  ? 

Mr.  Bex  Eisex.  Yes,  sir. 

Mr.  Halley.  Will  you  state  whether  or  not  you  have  here  the  in- 
come tax  returns  for  Greenacres? 

Mr.  Bex  Eisex.  Yes  [produces  returns].     The  schedules  are  inside. 

Mr.  Halley.  You  have  handed  me  a  folder  of  income  tax  returns 
for  the  Greenacres  and  William  H.  Bischolf,  known  as  Greenacres 
Club.  Are  these  all  of  the  income  tax  returns  for  the  Greenacres 
Club? 

Mr.  Bex  Eisex.  Yes. 

Mr.  Halley.  I  otfer  them  in  evidence  as  exhibit  Xo.  14. 

The  Chairmax.  The  folder  will  be  received  in  evidence  and  made 
a  part  of  the  record  as  exhibit  No.  14. 

(Folder  containing  income  tax  returns  of  Greenacres  and  William 
H.  Bischoff,  trading  as  Greenacres  Club,  1945  through  1949,  marked 
"Exhibit  No.  14."     Later  returned  to  witness.) 

yiv.  Halley.  Greenacres  Club  is  located  where  ? 

Mr.  Bex  Eisex.  In  Broward  County.  I  don't  believe  it  is  in  any 
town.     It  is  county  "property."'' 

Mr.  Halley.  Broward  County  is  the  county  immediately  adjacent 
to  the  county  in  which  Miami  is  located;  is  that  right? 

Mr.  Bex  Eisex.  That  is  right. 

Mr.  Halley.  Greenacres  Club  is  a  place  which  serves  meals  ? 

Mr.  Bex  Eisex.  That  is  right. 

Mr.  Halley.  Does  it  also  have  entertainment  ? 

Mr.  Bex  Eisex.  No  entertainment. 

Mr.  Halley.  Does  it  have  gambling,  card  games,  roulette,  and  so 
forth  ? 

Mr.  Bex  Eisex.  Yes. 

Mr.  Halley.  And  what  other  games  of  chance,  would  you  say  ? 

Mr.  Bkx  Eisex.  They  had  a  wheel  there. 
Mr.  Halley.  Roulette  wheel  ? 

Mr.  Bfx  Eisex.  Not  roulette.     What  do  you  call  it  ?     It  is  called 
the  Big  Six  wheel — that  is  what  they  call  it. 
Mr.  Halley.  Does  it  have  card  games  ? 
Mr  Bex  Eisex.  I  believe  it  has. 


10  lORG'ANIZE'D    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  Halley.  Do  you  have  the  1949  return  for  Greenacres?  I  see 
the  last  one  here  is  1948. 

Mr.  Ben  Eisen.  No ;  that  year  is  not  over  yet.  ^ 

Mr.  Halley.  You  are  on  a  fiscal  year  ending  October  31,  1949? 

Mr.  Ben  Eisex.  Right. 

Mr.  Halley.  This  return  shows  the  following  as  the  owners  of 
Greenacres  Club :  Greenacres  60  percent  and  W.  H.  Bischoff  40  per- 
cent.   Is  there  a  breakdown  of  the  parties  in  interest  of  Greenacres  ? 

Mr.  Ben  Eisen.  I  believe  in  this  particular  return  the  60  percent  of 
Greenacres  is  transferred  over  to  Boheme  and  picked  up  in  that  return 
with  all  of  the  other  partners.    Do  you  want  to  check  that  now  ? 

Mr.  Halley.  Yes ;  we  will  do  that  now. 

Mr.  Ben  Eisen.  Where  is  that  return  you  just  had  ? 

Senator  Hunt,  It  is  on  the  bottom  there.    It  is  exhibit  8. 

Mr.  Ben  Eisen.  It  is  picked  up  in  the — the  60  percent  was  picked 
up  over  here.  It  was  picked  up  in  this  income-tax  return  and  you  will 
probably  see  it  when  you  check  the  record. 

Mr.  Halley.  Do  you  have  the  return  for  William  H.  Bischoff  ? 

Mr,  Ben  Eisen,  Yes,  I  just  gave  you  the  folder.  Here  it  is — the 
Greenacres,  the  one  that  you  just  had  in  your  hand.  You  see  it  right 
here,  "income  from  partnership  of  Greenacres,  $133,233.88." 

Mr.  Halley.  Will  you  look  at  the  return  for  the  Club  Boheme  ?  Do 
you  have  that  there  ? 

Mr.  Ben  Eisen.  You  have  it. 

Senator  Hunt.  It  is  Exhibit  No.  8. 

Mr.  Halley.  I  will  now  turn  to  the  return  for  Colonial  Inn.  I  note 
that  among  the  owners  of  Colonial  Inn  in  your  previous  year,  1947-48, 
there  appeared  F.  Erickson,  but  he  does  not  appear  among  the  owners 
of  the  Club  Boheme  on  the  tax  return.  Do  you  know  whether  or 
not  Frank  Erickson  had  any  beneficial  interest  in  the  Club  Boheme? 

Mr.  Ben  Eisen.  None  that  I  know  of. 

Mr.  Halley.  I  notice  that  B.  Briggs  has  5  percent  of  Colonial  Inn. 
Does  B.  Briggs  have  any  beneficial  interest  in  Club  Boheme? 

Mr.  Ben  Eisen.  Not  that  I  know  of. 

Mr.  Halley.  I  notice  that  Joe  Doto  had  15  percent  of  the  Colonial 
Inn.     Do  you  know  Joe  Doto  by  another  name? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  By  wliat  other  name  ? 

Mr.  Ben  Eisen.  Joe  Adonis. 

Mr.  Halley.  Does  ,iop  A  donis  by  that  name  or  any  other  name  have 
any  interest  in  the  Club  Boheme  ? 

Mr.  Ben  Eisen.  No. 

Mr,  Halley,  When  the  Colonial  Inn  was  converted  from  a  gambling 
casino  to  a  burlesque  house,  were  the  accounts  closed  formally  ? 

Mr.  Ben  Eisen.  I  believe  they  were. 

Mr,  Halley,  Did  you  handle  that  transaction? 

Mr,  Ben  Eisen.  No, 

Mr.  Halley.  Who  did? 

Mr.  Ben  Eisen.  ISIr,  Lansky, 

Mr,  Halley,  What  accountant  made  up  the  account? 

Mr,  Ben  Eisen.  We  didn't  have  any. 

Mr.  Halley.  No  accountants? 

Mr.  Ben  Eisen.  No. 


ORGANIZED    CRIME    IN    INTERSTATE    COMIVIERCE  11 

Mr.  Halley.  Are  you  referring  to  Jack  Lansky  ? 
Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  Who  gave  Jack  Lansky  the  figures  with  which  to  close 
the  accounts  for  Colonial  Inn  ? 

Mr.  Ben  Eisen.  He  took  the  figures  from  the  final  report. 

Mr.  Halley.  You  mean  that  you  used  the  income-tax  report  as  the 
final  report  ? 

Mr.  Ben  Eisen.  Right. 

Mr.  Halley.  Was  there  a  more  full  report  given  to  the  participants 
than  the  income-tax  report? 

Mr.  Ben  Eisen.  No. 

IVIr.  Halley.  Do  you  have  possession  of  the  canceled  checks  for  the 
Colonial  Inn  ? 

Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  Do  you  have  the  final  distribution  that  was  made  to 
the  partners  of  Colonial  Inn  ? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Where  are  the  books  that  were  used  for  that  final  dis- 
tribution ? 

Mr.  Ben  Eisen.  I  don't  believe  that  they  were  paid  by  checks. 

Mr.  Halley.  How  were  they  paid  ? 

Mr.  Ben  Eisen.  In  cash,  I  believe. 

Mr.  Halley.  How  much  cash  was  involved? 

Mr.  Ben  Eisen.  I  don't  know.    I  w  asn't  at  the  closing,  sir. 

Mr.  Halley.  You  are  an  accountant.  You  certainly  must  be  able 
to  guess  how  much  cash  the  Colonial  Inn  had  at  the  end  of  business. 

Mr.  Ben  Eisen.  The  records  will  show  that. 

Mr.  Halley.  Will  you  look  at  the  records  and  tell  me? 

Mr.  Ben  Eisen.  I  don't  have  the  records  here. 

Mr.  Seymour  Eisen.  We  brought  the  current  stuff  down  first.  Any- 
thing else  we  will  produce,,  if  you  need  it. 

Mr.  Halley.  Can  you  produce  the  record  of  the  Colonial  Inn  ? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  Will  you  produce  that  tomorrow  morning  at  9  o'clock  ? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  Are  you  familiar  with  the  records  ? 

Mr.  Seymour  Eisen.  Yes. 

Mr.  Halley.  Do  you  know  how  much  cash  was  available  for  distri- 
bution at  the  time  the  Colonial  Inn  closed  ? 

Mr.  Seymour  Eisen.  No,  sir. 

Mr.  Ben  Eisen.  The  records  will  show  exactly  what  cash  there  was 
at  the  end  of  the  period,  because  it  is  recorded  in  the  records.  Let  me 
have  one  of  those  things  there.  It  is  copied  right  in  here  and  also 
the  money  in  the  bank  is  there,  so  that  woulcl  be  the  cash  at  the 
end  of  the  period. 

Mr.  Halley.  Where  did  you  get  your  figures  for  the  daily  receipts 
of  the  Colonial  Inn  ? 

Mr.  Ben  Eisen.  From  the  cash  book. 

Mr.  Halley.  Who  kept  the  cash  book  ? 

Mr.  Ben  Eisen.  Seymour. 

Mr.  Halley.  Where  did  Seymour  get  the  figures  with  which  to  keep 
the  cash  book  ? 


12  ORGANIZED    CKIIVIE    IN    INTERSTATE    C'OMIMERCE 

Mr.  Seymour  Eisen.  The  cash  book  is  a  daily  or  monthly  summary, 
however  you  want  it,  of  the  business  transactions.  It  shows  the  dis- 
position of  moneys  put  in  the  bank  and  pay-outs  for  expenses. 

Mr.  Halley.  Were  you  in  charge  of  the  bookkeeping  operations  of 
the  Colonial  Inn  ? 

Mr.  Seymour  Eisex.  Yes,  sir. 

Mr.  Halley.  From  day  to  day? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  Are  you  in  charge  of  the  day-to-day  bookkeeping  oper- 
ations at  the  Club  Boheme? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  At  the  end  of  the  day  do  you  personally  count  the  cash  ? 

Mr.  Seymour  Eisen.  No,  sir. 

Mr.  Halley.  Who  gives  you  the  figures  each  day  of  cash  receipts  and 
cash  disbursements? 

Mr.  Seymour  Eisen.  The  cash  receipts  in  the  restaurant  are  counted 
by  me  and  are  deposited  in  the  bank  by  me.  The  cash  distributions  are 
recorded  and  checks  are  made  periodically. 

Mr.  Halley.  Let's  turn  to  the  gambling  casino.  Who  counts  the 
cash  receipts  there? 

Mr.  Seymour  Eisen-  I  had  nothing  to  do  with  that. 

Mr.  Halley.  Do  the  books  reflect  the  profits  of  the  gambling  casino  ? 

Mr.  Seymour  Eisen.  Yes;  there  is  a  record  kept  of  the  gambling 
casino  income. 

Mr.  Halley.  Daily  ? 

Mr,  Seymour  Eisen.  Daily. 

Mr.  Halley.  Do  you  keep  that  record  ? 

Mr.  Seymour  Eisen.  No. 

Mr.  Halley.  Who  kept  it  ? 

Mr.  Seymour  Eisen.  Mr,  Lansky. 

Mr.  Halley.  Personally? 

Mr,  Seymour  Eisen,  He  submitted  it  to  me  at  the  end  of  the  season 
and  I  analyzed  it. 

Mr.  Halley.  "VYliat  do  you  mean  by  analyzed  it  ? 

Mr.  Seymour  Eisen.  I  can  show  you  better  than  I  can  explain  it. 

Mr,  Halley,  Will  you  do  that? 

Mr.  Seymour  Eisen,  I  will  turn  to  the  Boheme  Casino,  to  the  date 
January  3,  1950,  This  is  the  sheet  that  was  handed  to  me  at  the  end 
of  the  year  and  I  summarized  it  and  analyzed  it.  Now  in  this  book 
here  let's  look  for  the  date  January  3,  and  it  shows :  "win  $1,385  ;  loss, 
$128 ;  cigars,  etc.,  $21.65."    Now,  sir,  that  is  the  extent  of  that  day. 

Mr.  Halley,  Does  that  puiport  to  be  a  page  covering  that  daj^'s 
operations  ? 

Mr.  Seymour  Eisen,  Yes. 

Mr.  Halley.  You  don't  receive  these  pages  each  daj' ;  is  that  correct? 

Mr.  Seymour  Eisen,  No,  sir, 

Mr.  Halley.  Who  handed  vou  these  pages  at  the  end  of  the  season, 
the  1950  season  ? 

Mr.  Seymour  Eisen.  I  don't  remember  what  individual  handed 
them  to  me ;  I  just  got  them  and  summarized  them, 

Mr,  Halley.  You  got  them  all  in  a  batch  ? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr,  Halley.  Willyou  search  your  memory  and  state  to  this  com- 
mittee who  handed  you  the  batch  of  papers  in  this  exhibit  entitled 


ORG'AISriZED    CE'IME    IN    ENPT'ERSTAT'E    COMMEROE  13 

"Cash  Receipts  and  Disbursements'"  for  the  Club  Boheme  gambling 
operations  ? 

Mr.  Seymour  Eisen.  No  one  handed  it  to  me.  The  only  way  it 
happens  is  this :  I  would  go  into  the  casino  room  at  the  cashier's  table 
and  that  is  where  it  was  and  I  just  took  them. 

Mr.  Halley.  Some  time  ago  you  said  that  Mr.  Lansky  himself  kept 
that  record;  is  that  correct? 

Mr.  Seymour  Eisen.  As  far  as  I  know^;  yes. 

Mr.  Halley.  Is  that  his  handwriting? 

Mr.  Seymour  Eisen.  I  don't  know. 

Mr.  Halley.  We  are  looking  at  page  dated  1-3-50,  which  presum- 
ably means  January  3,  1950.  In  the  upper  right-hand  column  there 
is  shown  a  balance  of  $175,886.83.  Do  you  recognize  that  hand- 
writing at  all? 

Mr.  Seymour  Eisen.  No,  sir. 

Mr.  Halley.  Did  you  ever  see  anybody  making  these  sheets  out? 

Mr.  Seymour  Eisen.  No,  sir. 

Mr.  Halley.  Who  told  you  these  sheets  existed? 

Mr.  Seymour  Eisen.  Mr.  Lansky  had  the  records. 

Mr.  Halley.  Which  Mr.  Lansky? 

Mr.  Seymour  Eisen.  Jack  Lansky  I  am  referring  to,  sir. 

Mr.  Halley.  What  records  does  he  have  ? 

Mr.  Seymour  Eisen.  He  is  in  charge  of  all  records,  and  I  did  the 
work  for  him  as  bookkeeper. 

Mr.  Halley.  At  the  end  of  each  night's  operations  is  the  cash 
counted  ? 

Mr.  Seymour  Eisen.  May  I  explain  something  here.  There  are 
two  divisions  to  this,  the  restaurant  and  the  casino.  I  handled  the 
restaurant. 

Mr.  Halley.  You  count  the  cash  each  night  at  the  restaurant? 

Mr.  Seyiniour  Eisen.  Yes;  and  I  make  the  deposits. 

Mr.  Halley.  You  don't  count  the  cash  at  the  casino  ? 

Mr.  Seymour  Eisen.  I  have  nothing  to  do  with  that  until  the  end 
of  the  year,  when  I  put  it  in  this  book. 

Mr.  Halley.  Who  counts  the  cash  at  the  casino  ? 

Mr.  Seyjniour  Eisen.  I  don't  know, 

]Mr.  Halley.  You  are  there  every  night  ? 

Mr.  Seymour  Eisen.  I  am  there  part  of  the  night  and  during  the 
day. 

Mr.  Halley.  You  were  there  at  the  end  of  the  night's  operations 
in  the  dining  room  ? 

Mr.  Seymour  Eisen.  Yes. 

Mr.  Halley.  Who  is  in  charge  of  the  casino  ? 

Mr.  Seymour  Eisen.  Mr.  Lansky. 

Mr.  Halley.  Jack  Lansky  ? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  Is  he  there  every  night,  substantially  every  night? 

INIr.  Seymour  Eisen.  Yes. 

Mr.  Halley.  Do  the  books  reflect  the  people  employed  in  the  casino  ? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  What  books  reflect  it  ? 

Mr.  Seymour  Eisen.  The  payroll  books. 

Mr.  Halley.  What  exhibit  is  that  ? 


l4  ORG'AXIZED    CRIME    IN    INTERSTATE    C'OIVEMERCE 

Mr.  Seymour  Eisen.  I  submitted  them  to  you. 

Mr.  Halley.  They  are  in  evidence? 

Mr.  Seyimoue  Eisen.  Yes,  sir. 

Mr.  Ben  Eisen.  Can  I  help  j^ou  out  a  little  ? 

Mr.  Halley.  Yes. 

Mr.  Ben  Eisen.  I  just  want  to  explain  something  here.  If  my 
brother  had  to  stay  there  every  night  and  watch  them  count  the  money, 
he  would  be  there  until  5  or  6  o'clock  in  the  morning,  because  these 
places  don't  close  until  very  late,  and  the  entire  gambling  casino  is 
in  charge  of  Mr.  Lansky,  in  main  control  there,  and  he  prepares  his 
own  summary  that  will  be  reflected  in  the  books.  At  the  end  of  the 
night  I  can  probably  tell  you  myself  that  after  they  close  each  table 
the  take  the  money  and  put  it  in  the  cashier's  cage  and  they  count  it 
down. 

Mr.  Halley.  Who  counts  it? 

Mr.  Ben  Eisen.  Mr.  Lansky. 

Mr.  Halley.  Personally? 

Mr.  Ben  Eisen.  Yes ;  or  Mr.  Sacllo,  or  whoever  is  there  with  him. 

Mr.  Halley.  One  of  the  partners  supervises  it? 

Mr.  Ben  Eisen.  Yes.  One  of  the  partners  counts  it  and  another 
partner  checks  it  with  him.  In  the  casino  they  have  a  cashier  at  the 
cashier's  cage  where  all  of  the  "take"  is  taken,  and  those  figures  in  all 
probability  are  the  cashier's  figures,  and  you  can  find  out  who  he  is 
by  looking  in  the  payroll  book  which  reflects  the  cashier's  crap  men 
and  everybody. 

Mr.  Halley.  It  is  your  opinion  that  this  handwriting  here  is  the 
handwriting  of  the  cashier  ? 

Mr.  Ben  Eisen.  That  is  right.    It  is  not  Jack  Lansky's  handwriting. 

Mr.  Halley.  You  are  familiar  with  the  handwriting  of  Jack 
Lansky  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  Do  you  know  the  cashier's  name? 

Mr.  Ben  Eisen.  George  Brown  and  Joseph  Kirby. 

Mr.  Halley.  That  is  something  that  can  be  furnished  later  and  at 
some  length  ? 

Mr.  Ben  Eisen.  All  right. 

Mr.  Halley.  Who  runs  the  Greenacres'  operations? 

Mr.  Ben  Eisen.  Samuel  L.  Bratt. 

Mr.  Halley.  Is  Edward  G.  Bischoff  connected  with  Greenacres? 

Mr.  Ben  Eisen.  Edward  ?    It  is  William. 

Mr.  Halley.  You  have  it  William  H.  Bischoff  here. 

Mr.  Ben  Eisen.  That  is  right. 

Mr.  Halley.  Is  he  connected  Avith  Greenacres'  operations? 

Mr.  Ben  Eisen.  Yes. 

Mr,  Halley.  Who  runs  the  big  crap  game  at  the  Greenacres  ? 

Mr.  Ben  Eisen.  William  H.  Bischoff  and  Greenacres  have  a  60-40 
partnership. 

Mr.  Halley.  Who  actually  operates  it,  supervises  the  operations? 

Mr.  Ben  Eisen.  Mr.  Bischoff. 

Mr.  Halley.  Do  you  know  a  Mr.  Joe  Massei  ? 

Mr.  Ben  Eisen.  No. 

Mr.  Halley.  Did  you  ever  hear  of  the  name? 

Mr.  Ben  Eisen.  In  the  papers ;  yes. 


ORGANIZED    CRIME    IX    IN'TERSTATE    COREVIERCE  15 

Mr.  Halley.  Have  you  ever  seen  anybody  by  the  name  of  Joe 
Massei  ? 

Mr.  Ben  Eisen.  Never  saw  liim. 

Mr,  Hallet.  Have  you  ever  seen  Joe  Massei,  Seymour? 
Mr.  Seymour  Eisen.  No. 

Mr.  Hali.ey.  Have  you  ever  heard  of  any  connection  with  Green- 
aci'es  or  the  Colonial  Inn,  either  direct  or  indirect,  by  Joe  Massei  or 
have  you  seen  any  records  indicating  such  participation? 
:Mr.  Bex  Eisen.  No. 

IMr.  Halley.  "What  other  records  do  you  have  here  ? 
Mr.  Ben  Eisen.  These  are  the  same  thing — Greenacres.  You  will 
note  that  this  Greenacres  is  operated  in  two  sections;  one  is  the 
restaurant  and  the  other  is  the  casino.  One  is  the  60-40  ownership, 
this  part  over  here,  and  I  just  pointed  out  to  you  the  restaurant  end, 
and  this  other  one  here  is  the  gambling  end. 

]\Ir.  Halley.  It  is  in  the  gambling  that  you  have  the  60-40  per- 
centage :  is  that  right  ? 

Mr.  Ben  Eisen.  Let  me  illustrate. 

Mr.  Halley.  Go  ahead. 

Mr.  Ben  Eisen,  The  Bischoff-Greenacres  has  the  main  game ;  that 
is  tlie  big  game,  as  they  call  it.  Now  the  wheel  and  the  Bix  Six  are 
run  by  the  restaurant,  and  the  restaurant  takes  that  and  puts  it  in  its 
income  along  with  the  income  from  the  food,  drinks,  and  so  forth. 

Mr.  Halley.  In  other  words,  the  tax  returns  in  exhibit  No.  14  reflect 
the  income  from  the  big  game  ? 

Mr.  Ben  Eisen.  That  is  right. 

Mr.  Halley.  Do  I  understand  correctly  that  the  tax  return  that  is 
filed  each  year  for  Greenacres  and  Bischoff  is  a  tax  return  on  one 
crap  game  ? 

Mr,  Ben  Eisen.  That  is  right. 

Mr.  Halley,  Known  colloquially  as  the  big  crap  game  ? 

Mr,  Ben  Eisen,  Yes,  sir. 

Mr.  Halley.  Which  is  run  hj  Bischoif  ? 

Mr.  Ben  Eisen,  Yes,  sir. 

Mr.  Halley,  Isn't  it  a  fact  that  Joe  Massei  has  been  interested  in 
the  big  game,  too  ? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  Don't  they  call  it  the  New  York  crap  game,  too  ? 

Mr,  Ben  Etsen.  Yes. 

Mr.  Halley.  There  is  other  gambling  at  the  Greenacres  ? 

Mr.  Ben  Eisen,  Yes, 

Mr,  Halley,  Is  there  another  table  where  the  stakes  are  smaller? 

Mr.  Ben  Eisen,  Yes, 

Mr.  Halley.  Koulette  wheels? 

Mr,  Ben  Eisen,  Yes, 

Mr.  Halley.  A  separate  return  is  filed  for  the  other  gambling  op- 
erations ? 

Mr.  Ben  Eisen.  Only  for  the  wheel  and  the  restaurant,  which  is 
together. 

Mr.  Halley.  How  about  the  smaller  crap  game  ? 

Mr.  Ben  Eisen.  That  is  taken  into  the  big  crap  game,  which  han- 
dles the  "craps." 

Mr.  Halley.  All  of  the  crap  games  are  reflected  in  the  returns  of 
the  Greenacres-Bischoff  combination,  exhibit  No.  14  ? 

Mr.  Ben  Eisen,  That  is  right. 


16  ORGANIZED    CRIME    IN    INTERSTATE    COIMMERCE 

Mr.  Halley.  Now,  you  have  produced  here  another  batch  of  re- 
turns in  a  folder  entitled  "Greenacres  Regular,"  which  I  will  offer 
in  evidence  as  exhibit  No.  15. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record 
as  exhibit  No.  15. 

(Said  folder  containing  income-tax  returns  of  Greenacres  Club,  for 
1944  through  1949,  marked  "Exhibit  No.  15,"  returned  to  witness.) 

Mr.  Halley.  Will  you  describe  the  income  that  is  indicated  in  these 
return  constituting  exhibit  No.  15  ? 

Mr.  Ben  Eisen.  I  am  giving  you  everything  I  have  got,  so  you 
can  have  a  little  file  about  it.  If  it  is  not  on  top,  then  it  is  inside. 
This  one  here  is  for  1944.     It  should  be  in  another  folder  here. 

Mr.  Halley.  Let's  find  it  now.  Let's  make  sure  they  are  all  in  one 
folder,  in  one  exhibit. 

Mr.  Seymour  Eisen.  There  is  none  for  1949-50  yet. 

Mr.  Halley.  How  about  1948-49? 

Mr.  Seymour  Eisen.  Here  it  is. 

Mr.  Halley.  You  have  handed  me  one  ending  October  31,  1949. 

Mr.  Ben  Eisen.  It  must  be  in  here  somewhere ;  maybe  it  is  mixed 
up  in  here  somewhere  here  before  1949.  See?  This  is  the  Bischoff 
one  and  this  is  the  Greenacres.    Is  that  right  ? 

Mr.  Halley.  I  don't  know.     You  tell  me. 

Mr.  Ben  Eisen.  Yes,  this  is  for  Greenacres.  Now  you  have  them 
up  to  1949. 

Mr.  Halley.  So  we  have  exhibit  Nos.  14  and  15  properly  identified? 

Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  Exhibit  No.  16,  which  is  offered  in  evidence,  is  a  part- 
nership return  of  income  tax  from  January  17,  1946,  to  April  3,  1946, 
entitled  "Frank  Erickson,  Bert  Briggs,  and  Colonial  Inn." 

The  Chairman.  It  will  be  received  in  evidence  and  made  a  part 
of  the  record  as  exhibit  No.  16.     (Later  returned  to  witness.) 

Mr.  Halley.  Let  it  be  known  that  the  business  or  profession  is 
noted  on  the  record  as  booking,  too. 

The  Chairman.  It  will  be  so  noted. 

Mr.  Ben  Eisen.  This  money  here  is  shown  as  income  to  the  Colonial 
Inn,  and  then  it  is  picked  up  in 

Mr.  Halley.  In  other  words,  the  income  shown  in  exhibit  No.  16 
is  picked  up  in  another  return  ? 

Mr.  Ben  Eisen.  That  is  right. 

Mr.  Halley.  This  holder  is  what  ? 

Mr.  Ben  Eisen.  This  shows  the  ownership  of  the  Colonial  realty, 
the  property. 

Mr.  Halley.  And  in  this  folder  is  the  return  showing  the  property 
income  ? 

Ml".  Ben  Eisen.  Yes;  and  the  sale  of  the  property  to  Greenacres. 

Mr.  Halley.  I  offer  it  in  evidence. 

The  Chairman.  It  will  be  received  in  evidence  and  made  a  part  of 
the  record  as  exhibit  No.  17. 

(Said  folder  identified  as  above  marked  "Exhibit  No.  17."  Later 
returned  to  witness.) 

Mr.  Halley.  As  a  convenience  to  you  these  folders  will  be  kept 
together. 

Mr.  Ben  Etsen.  Thank  you. 


ORGANIZED   CRIME    IN    ENTE'RSTATE    COMMERCE  17 

Mr.  Halley.  I  would  now  like  to  go  back  to  the  cessation  of  the 
operations  at  Colonial  Inn  and  the  start  of  the  operations  at  Club 
Bolieme.     The  Colonial  Inn  operated  through  1948 ;  is  that  right  ? 
Mr.  Ben  Eisen.  Yes,  sir. 

Mr.  Halley.  And  the  very  next  year  Club  Boheme  started ;  is  that 
right? 
Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  According  to  your  records  and  your  testimony  Frank 
Erickson  and  Bert  Briggs  no  longer  participate  in  the  operations ;  is 
that  correct? 

Mr.  Ben  Eisen.  In  the  Boheme? 

Mr.  Halley.  Yes. 

Mr.  Ben  Eisen.  That  is  right. 

Mr.  Halley.  Can  you  explain  the  circumstances  under  which  they 
dropped  out  of  that  operation  ? 

Mr.  Ben  Eisen.  I  don't  know. 

Mr.  Halley.  Have  you  ever  done  any  accounting  for  Frank  Erick- 
son? 

Mr.  Ben  Eisen.  No. 

Mr.  Halley.  Have  you  ever  done  any  personal  accounting  for 
Frank  Erickson? 

Mr.  Ben  Eisen.  Never. 

Mr.  Halley.  Do  you  do  any  personal  accounting  for  Bert  Briggs  ? 

Mr.  Ben  Eisen.  No. 

Mr.  Halley.  Have  you  ever  ? 

Mr.  Ben  Eisen.  No,  sir;  aside  from  giving  them  a  statement  at 
times  of  their  booking,  when  he  brought  me  the  figures  I  made  up  a 
statement  of  the  accounts  and  it  reflected  the  profits,  of  which  Colonial 
Inn  received  one-half,  and  I  believe  later  on  Boheme  had  an  interest 
with  him. 

Mr.  Halley,  Do  you  have  any  correspondence  that  you  have  brought 
with  you  with  Erickson  or  Briggs  ? 

Mr.  Ben  Eisen.  No.  I  didn't  keep  any  correspondence  with  them. 
The  only  thing  I  did  was  to  answer  a  letter  their  accountant  sent  me, 
which  I  received  around  January  sometime,  and  he  was  in  an  awful 
rush  to  get  an  idea  of  the  share  that  Briggs  or  Erickson  had,  and  I 
wrote  him  a  letter  and  told  him  exactly  what  the  figures  showed,  and 
told  him  that  the  tax  returns  would  follow  as  soon  as  they  were 
drawn  up. 

Mr.  Halley.  Do  you  have  a  copy  of  the  letter  to  which  you  refer? 

Mr.  Ben  Eisen.  No.     I  don't  keep  them. 

Mr.  Halley.  You  don't  keep  copies  of  letters  ? 

Mr.  Ben  Eisen.  No.    I  don't  write  many. 

Mr.  Halley.  What  is  that  accountant's  name  ? 

Mr.  Ben  Eisen.  Andy  Pellino. 

Mr.  Halley.  "\Yliat  is  his  address  ? 

Mr.  Ben  Eisen.  I  believe  it  is  Fifth  Avenue,  New  York  City. 

Mr.  Halley.  Do  you  recall  in  the  year  1948  writing  a  letter  to 
Andy  Pellino  about  the  income  of  Briggs  and  Erickson? 

Mr.  Ben  Eisen.  Yes. 

Mr.  Halley.  And  that  was  2  years  ago  ? 

Mr.  Ben  Eisen.  I  believe  it  was. 

Mr.  Halley.  Wliy  does  that  letter  stand  out  in  your  memory  ? 


18  ORGANIZED   CRIME    IN    INTERSTATE    CO]VIMERCE 

Mr.  Ben  Eisen.  It  could  only  be  a  schedule  of  what  their  share  of 
the  profits  were  from  the  Colonial  Inn,  if  it  was  1948,  and  also  their 
share  of  the  profits  from  the  books,  so  that  they  could  enter  it  on  their 
returns.  . 

Mr.  Halley.  What  other  letters  did  you  write  Andy  Pellmo?  Did 
you  write  him  from  time  to  time  or  just  once? 

Mr.  Ben  Eisen.  I  don't  believe  I  ever  wrote  more  than  two  letters 
to  him. 

Mr.  Halley.  In  each  case  stating  income  ? 

Mr.  Ben  Eisen.  Yes ;  always  income.  They  would  ask  me  what  it 
was  and  I  would  just  answer  his  letter  and  sign  it. 

Mr.  Halley.  You  know  Andy  Pellino  pretty  well  ? 

Mr.  Ben  Eisen.  I  have  known  him  a  long  time  but  I  never  had  any 
business  with  him  except  these  two  letters. 

Mr.  Halley.  What  books  did  you  refer  to  ? 

Mr.  Ben  Eisen.  They  had  a  book  in  the  Hollywood  Beach  Hotel. 

Mr.  Halley.  What  kind  of  a  book  ? 

Mr.  Ben  Eisen.  Horse  book. 

Mr.  Halley.  "Who  ran  it  ? 

Mr.  Ben  Eisen.  Bert  Briggs. 

Mr.  Halley.  ^Vlio  owned  it? 

Mr.  Ben  Eisen.  Bert  Briggs,  I  suppose ;  it  was  in  his  place. 

Mr.  Halley.  Did  Frank  Erickson  have  an  interest  in  it? 

Mr.  Ben  Eisen.  Yes. 

Mr,  Halley.  In  what  years  did  they  have  these  books  ? 

Mr.  Ben  Eisen.  The  books  ran  all  through  the  Boheme  or  the  Colo- 
nial Inn,  we  will  say,  because  the  income  was  picked  up  in  both  returns. 

Mr.  Halley.  You  also  know  that  Frank  Erickson  alone  or  with 
others  has  a  gambling  concession  at  the  Boca  Raton  ? 

Mr.  Ben  Eisen.  I  don't  know. 

Mr.  Halley.  Isn't  it  also  a  fact  that  Frank  Erickson,  without  or 
with  associates  or  partners,  has  a  gambling  concession  or  interest  at 
the  Roney-Plaza  Hotel? 

Mr.  Ben  Eisen.  I  don't  know. 

Mr.  Halley.  Do  you  know  whether  or  not  Frank  Erickson  has 
employees  or  agents  accepting  bets  at  the  race  tracks  in  and  around 
Miami  ? 

Mr.  Ben  Eisen.  I  don't  know. 

Mr.  Halley.  Did  you  ever  discuss  with  Erickson  the  reason  why 
Erickson  and  Briggs  did  not  participate  in  the  Club  Boheme? 

These  questions  are  addressed  also  to  your  brother,  Seymour  Eisen. 
Do  you  know  the  answers  to  any  of  those  questions  ? 

Mr.  Seymour  Eisen.  No,  sir. 

Mr.  Halley.  Did  Jack  or  Mever  Lansky  ever  discuss  with  you,  Sey- 
mour, the  reasons  why  Frank  Erickson  don't  participate  in  the  Club 
Boheme? 

Mr.  Seymour  Eisen.  No  ;  they  never  talked  or  discussed  that  with 
me  at  all. 

(Recess.) 

Mr.  Halley.  Was  there  a  horse  book  at  Colonial  Inn  ? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Or  at  Greenacres? 

Mr.  Ben  Eisen.  No. 


ORGANIZED    CRIME    IN    INTERSTAT'E    COMMERCE  19 

Mr.  Halley.  Or  Club  Bolieme  ? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Are  your  answers  to  the  questions  the  same  ? 

Mr.  Seymour  Eisen.  Yes,  sir. 

Mr.  Halley.  Was  there  ever  a  horse  wire  in  any  of  those  chibs? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Seymour  Eisen.  I  never  saw  none. 

Mr.  Halley.  Did  they  have  a  ticker  service  at  any  of  these  places  ? 

Mr.  Ben  Eisen.  None  of  those  places. 

Mr.  Halley.  Did  you  ever  hear  of  a  place  called  the  Farm  Casino  ? 

Mr.  Ben  Eisen.  Where  ? 

Mr.  Halley.  F-a-r-m  Casino,  in  Broward  County. 

Mr.  Ben  Eisen.  That  is  the  farm.  There  hasn't  been  any  gambling 
there  in  years. 

Mr.  Halley.  Was  there  once  gambling  at  the  farm  ? 

Mr.  Ben  Eisen.  Yes.  They  were  enjoined  a  long  time  ago;  long 
before  the  Colonial  Inn. 

Mr.  Halley.  Who  owns  the  farm  ? 

Mr.  Ben  Eisen.  The  farm  was  owned  by  Jack  Lansky. 

Mr.  Halley.  Did  Frank  Erickson  have  a  part  of  it? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  I  would  like  to  turn  to  the  rest  of  the  reports  and 
get  them  into  evidence. 

Exhibit  No.  18  is  a  folder  containing  statements  of  restaurant 
charges  for  Club  Boheme  to  customers  for  February  1950. 

(Folder  of  statements  of  restaurant  charges  for  Club  Boheme  to 
customers  for  February  1950  received  in  evidence  as  exhibit  No.  18. 
Later  returned  to  witness.) 

Mr.  Halley.  Next  is  a  folder  containing  unpaid  bills  of  Club 
Boheme. 

(Folder  of  unpaid  bills  for  Club  Boheme  received  in  evidence, 
marked  "Exhibit  No.  19."    Later  returned  to  witness.) 

INIr.  Sey^iour  Eisen.  Here  is  a  miscellaneous  checking  account. 

Mr.  Halley.  We  want  to  get  all  of  your  vouchers  and  checks  to- 
gether.   You  have  a  box  of  vouchers. 

Mr.  Seymour  Eisen.  This  is  the  Greenacres  checking  account. 
There  are  others  which  I  haven't  got  here. 

Mr.  Halley.  As  exhibit  No.  20,  I  offer  a  box  containing  canceled 
checks  of  Club  Boheme. 

( Checks  Nos.  1  through  1822  on  First  National  Bank  of  Hollywood, 
Fla.,  received  in  evidence  as  exhibit  No.  20.  Later  returned  to  wit- 
ness.) 

Mr.  Halley.  Mr.  Eisen,  will  you  state  whether  exhibit  No.  20  con- 
tains all  of  the  canceled  vouchers  and  bank  statements  of  Club 
Boheme  in  your  possession? 

Mr.  Seymour  Eisex.  I  don't  know  what  is  here,  sir.  I  would  have 
to  look  to  see  what  is  in  here. 

Mr.  Halley.  Would  you  rather  I  put  it  this  way :  Do  you  know  of 
any  that  you  have  that  are  not  in  this  box  ? 

Mr.  Seymor  Eisen.  There  are  other  records  around,  but  I  don't 
know  which  records.  I  will  bring  them  up,  as  we  told  JNIr.  Rice,  any- 
time he  M'ants  it. 

Mr.  Ben  Eisen.  We  were  in  such  a  hurry  to  get  down  here.  We  ^r* 
together  whatever  was  there  and  brought  it  down. 


20  ORGANIZED    CKIME    IN    INTERSTATE    COMAIERCE 

Mr.  Halley.  If  Mr.  Rice  visits  the  office,  where  are  they  located  ? 

Mr,  Seymour  Eisen.  Right  now  everything  is  at  the  farm  in  Hal- 
landale. 

Mr.  Halley.  If  Mr.  Rice  visits  the  farm  during  sometime  next 
week,  will  you  coo])erate  and  give  him  .any  other  records  he  needs? 

Mr.  Ben  Elsen.  Yes,  sir. 

Mr.  Seymour  Eisen.  All  the  records  that  he  wants ;  all  the  records 
I  have. 

Mr.  Halley.  Do  you  have  any  canceled  checks  for  the  Greenacres? 

Mr.  Seymour  Eisen.  There  is  a  box  of  them. 

Mr.  Halley.  Here  is  a  box  of  canceled  checks  and  bank  statements 
for  Greenacres,  which  I  offer  in  evidence  as  exhibit  No.  21. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Box  of  bank  statements  and  canceled  checks  of  Greenacres 
Restaurant  received  in  evidence  as  exhibit  No.  21.  Later  returned  to 
witness.) 

Mr.  Seymour  Eisen.  I  have  a  group  of  duplicating  deposit  slips  for 
Greenacres  and  Club  Boheme.     That  is  what  it  amounts  to. 

Mr.  Halley.  How  many  books  of  deposit  slips  are  there? 

Mr.  Seymour  Eisen.  Six. 

Mr.  Halley.  I  offer  the  entire  six  as  one  exhibit,  exhibit  No.  22. 

The  Chairman.  Let  it  be  received  and  made  a  part  of  the  record. 

(Six  books  of  deposit  slips  for  Greenacres  and  Club  Boheme  received 
in  evidence  as  exliibit  No.  22.     Later  returned  to  witness.) 

Mr.  Halley.  A  batch  of  some  canceled  checks  and  bank  statements 
of  the  Club  Boheme  and  payroll-tax  account  are  offered  in  evidence  as 
exhibit  No.  23. 

The  Chairman.  It  is  received  and  made  a  part  of  the  record. 

(Canceled  checks  and  bank  statement  of  Club  Boheme  and  payroll- 
tax  account  received  in  evidence  as  exhibit  No.  23.  Later  returned  to 
witness.) 

Mr.  Seymour  Eisen.  Here  are  three  checkbooks  and  two  check-stub 
records  of  both  the  Club  Boheme  and  Greenacres. 

Mr.  Halley.  I  offer  them  all  in  evidence  as  exhibit  No.  24. 

The  Chairman.  It  will  be  made  a  part  of  the  record. 

(Three  checkbooks  and  two  check-stub  records  of  Club  Boheme  and 
Greenacres  received  in  evidence  as  exhibit  No.  24.  Later  returned  to 
witness. ) 

Mr.  Halley.  A  folder  of  miscellaneous  papers,  correspondence,  etc. 

Mr.  Ben  Eisen.  That  was  just  laying  on  the  talde. 

Mr.  Halley.  It  is  offered  in  evidence  as  exhibit  No.  25. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Folder  of  miscellaneous  papers  of  Samuel  L.  Bratt,  Club  Green- 
acres, the  farm.  Club  Boheme,  received  in  evidence  as  exhibit  No.  25. 
Later  returned  to  witness. ) 

Mr.  Seymoltr  Eisen.  Here  are  some  Greenacres  paid  and  unpaid 
bills  that  go  with  that. 

Mr.  Halley,  What  do  you  have  next? 

Mr.  Seymour  Eisen.  Sales-tax  reports,  State  of  Florida, 

Mr.  Halley.  For  what?     Greenacres  Restaurant? 

Mr.  Seymour  Eisen.  Yes. 

Mr.  Halley.  I  offer  it  in  evidence  as  exhibit  No.  2G. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 


ORGANIZED    CRIME    IN    INTE'RSTAT'E    COMMERCE  21 

(Sales-tax  reports,  State  of  Florida,  Greenacres  Restaurant, 
received  in  evidence  as  exhibit  No.  26.     Later  returned  to  witness.) 

Mr.  Halley.  We  will  add  to  exhibit  No.  24  one  other  check-stub 
book. 

The  Chairman.  It  is  so  ordered. 

Mr.  Seymour  Eisen.  Other  accounts  receivable. 

Mr.  Halley.  Accounts  receivable  and  paid  for  Club  Boheme? 

Mr.  Seymoltr  Eisen.  Yes,  Club  Boheme,  1948-49  season. 

Mr.  Halley.  Offered  in  evidence  as  exhibit  No.  27. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Accounts  receivable  and  paid.  Club  Boheme,  1948-49  season,  re- 
ceived in  evidence  as  exhibit  No.  27.     Later  returned  to  witness.) 

Mr.  Halley.  The  current  checkbook  of  Club  Boheme  is  offered 
in  evidence  as  a  separate  exhibit,  No.  28. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Current  checkbook  for  Club  Boheme  received  in  evidence  as  exhibit 
No.  28.     Later  returned  to  witness.) 

Mr.  Halley.  A  batch  of  seven  folders  on  payroll  taxes  is  offered  as 
exhibit  No.  29,  identified  as  follows:  29-A,  the  farm;  29-B,  Colonial 
Inn;  29-C,  Greenacres  and  Bishop;  29-D,  Greenacres;  29-E,  George 
Scherman  et  al. ;  29-F  Club  Boheme;  29-G,  combination  Greenacres 
and  Bishop. 

The  Chairman.  Let  them  be  received  and  made  a  part  of  the  record. 

(Seven  folders  on  payroll  taxes,  marked  "Exhibit  Nos.  29-A 
through  29-G,  inclusive,  received  in  evidence.  Later  returned  to 
witness. ) 

Mr.  Seymour  Eisen.  Sales-tax  reports,  cabaret-tax  reports,  and 
bank  statements.  Club  Boheme. 

Mr.  Halley.  The  folders  so  described  are  offered  as  exhibit  No.  30. 

The  Chairman.  It  will  be  made  a  part  of  the  record. 

(Sales-tax  reports,  cabaret-tax  reports,  and  bank  statements,  Club 
Boheme,  received  in  evidence  as  exhibit  No.  30.  Later  returned  to 
witness.) 

Mr.  Halley.  Two  folders  as  previously  described  by  the  witness  as 
accident  reports,  offered  as  exhibit  Nos.  31-A  and  31-B. 

The  Chairman.  Let  them  be  received  and  made  a  part  of  the  record. 

(Accident  reports.  Club  Boheme,  received  in  evidence  as  exhibit 
Nos.  31-A  and  31-B.     Later  returned  to  witness.) 

Mr.  Halley.  The  lease  on  Club  Boheme  is  offered  as  exhibit  No.  32. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Lease  on  Club  Boheme  received  in  evidence  as  exhibit  No.  32. 
Later  returned  to  witness.) 

Mr.  Halley.  Contribution  folder,  Club  Boheme,  and  charities,  etc., 
is  offered  as  exhibit  No.  33. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Contribution  folder.  Club  Boheme,  and  charities  received  in  evi- 
dence as  exhibit  No.  33.     Later  returned  to  witness.) 

Mr.  Halley.  A  folder  of  realty  leases  for  the  Colonial  Inn,  offered 
as  exhibit  No.  34. 

The  Chairman.  Let  it  be  received  and  made  a  part  of  the  record. 

(Folder  of  realty  leases  for  Colonial  Inn  received  in  evidence  as 
exhibit  No.  34.     Later  returned  to  witness.) 

Mr.  Halley.  A  folder  entitled  "Show  Contracts"'  for  the  Club  Bo- 
heme is  offered  in  evidence  as  exhibit  No.  35. 


22  ORGAXIZED   CRIME    IN   INTERSTATE    COMMERCE 

The  CiiAiRMAx.  Let  it  be  received  and  made  part  of  tlie  record. 

(Folder  entitled  "Show  Contracts"  received  in  evidence  as  exhibit 
No.  35.     Later  returned  to  witness.)  i     ^  ,     •  i 

Mr.  Halley.  Miscellaneous  correspondence  folder  for  the  Colonial 
Inn  is  offered  as  exhibit  No.  36. 

The  Chairman.  Let  it  be  received  and  made  a  part  of  the  record. 

(Miscellaneous  correspondence  folder  for  Colonial  Inn  received  in 
evidence  as  exhibit  No.  36.     Later  returned  to  witness.) 

Mr.  Halley.  Cabaret-tax  folder  for  the  Colonial  Inn  is  offered  as 
exhibit  No.  37.) 

The  Chairman.  Let  it  be  received  and  made  a  part  ot  the  record. 

(Cabaret-tax  folder  for  Colonial  Inn  received  in  evidence  as  ex- 
hibit No.  37.     Later  returned  to  witness.) 

Mr.  Halley.  Minute  book  for  Bouche's  La  Boheme,  Inc.,  is  offered 
exhibit  No.  38. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Minute  book  for  Bouche's  La  Boheme  Inc.,  received  in  evidence  as 
exhibit  No.  38.     Later  returned  to  witness.) 

Mr.  Halley.  Wliat  is  Bouche's  La  Boheme? 

Mr.  Seymour  Eisen.  It  is  now  the  property  of  Club  Boheme. 

Mr.  Halley.  Just  what  is  it?  Wliat  is  this. corporation;  do  you 
know? 

Mr.  Seyiniour  Eisen.  I  do  not. 

Mr.  Halley.  Is  it  a  building? 

Mr.  Seymour  Eisen.  I  don't  know.  I  had  nothing  ever  to  do  with 
it.     These  are  the  reports  we  inherited  in  cleaning  up. 

Mr.  Halley.  One  folder  of  miscellaneous  papers  offered  in  evidence 
as  exhibit  No.  39. 

The  Chairman.  Let  it  be  received  and  made  a  part  of  the  record. 

(Exhibit  No.  39  contains  the  following:  Stock  certificates  for 
Bouche's  La  Boheme,  Inc.,  and  book  of  blank  stock  certificates;  agree- 
ment dated  January  9,  1947,  between  Richard  Melvin  of  Miami  and 
Hy  Ginnis  of  Chicago,  pertaining  to  Club  Boheme;  inventory  of  Club 
Boheme  and  various  legal  documents  re  Club  Boheme,  the  Hampshire 
Corp.,  Hy  Ginnis,  Albert  Bouche,  Edna  Bouche,  and  Noel  Montfiori ; 
bank  statement  and  canceled  checks  re  Greenacres,  Club  Boheme  tax 
account  and  Club  Boheme  cabaret  account.  Later  returned  to  wit- 
ness.) 

The  Chairman.  Let  the  record  show  that  the  committee  will  work 
in  cooperation  with  you,  and  that  Seymour  Eisen  says  anything  he 
can  do  he  will  do,  and  that  the  representatives  of  the  committee  may 
see  any  bills  or  any  current  reports  that  they  need  to  see. 

Mr.'  Halley.  Mr.  Ben  Eisen,  returning  to  the  exhibit  which  is  the 
cash  receipts  and  disbursements  on  the  gambling  at  Colonial  Inn — is 
this  La  Bolieme — Club  Boheme — I  think  you  identified  the  hand- 
writing on  the  individual  sheets  and  I  think  we  were  talking  about  a 
sheet  dated  January  3,  1950,  so  I  will  turn  to  that  again.  Is  that  the 
signature  of  the  cashier? 

Mr.  Ben  Eisen.  That  is  riglit. 

Mr.  Halley.  Do  you  remember  the  name  of  the  cashier? 

Mr.  Ben  Eisen.  I  will  give  you  the  cashier's  name.  His  name  is 
Joe  Kirby. 

Mr.  Halley.  Will  you  spell  that? 

Mr.  Ben  Eisen.  K-i-r-b-y.    And  George  Brown. 


ORGANIZED    CRIME    IN    ESTTERSTTAT'E    COMMERCE  23 

Mr.  Halley.  Wliicli  one's  is  that  handwriting? 

Mr.  Bex  Eisen.  I  don't  know ;  either  one.  Tliey  have  ahnost  the 
same  handwriting.  If  yon  look  tlirongh  here,  they  are  pretty  close. 
I  don't  know.  This  might  be  George  Brown  and  that  might  be  Joe 
Kirby. 

Mr.  Halley.  Where  are  they? 

Mr.  Ben  Eisex.  They  are  here.     One  is  here. 

Mr.  Halley.  Which  one  is  here  ? 

Mr.  Ben  Eisen.  Kirby  is  here. 

Mr.  Halley.  Where  is  he  ? 

Mr.  Ben  Eisen.  Living  in  Hollywood. 

Mr.  Halley.  Do  you  know  his  address? 

Mr.  Ben  Eisen.  No;  I  don't  know  his  address,  but  I  think  the 
records  will  show  it. 

Mr.  Halley.  Where  is  Brown? 

Mr.  Ben  Eisen.  Brown  just  finished  working  at  the  art  gallery 
and  he  went  up  to  New  York.  They  are  up  on  a  buying  trip.  He  will 
probably  be  back  soon. 

Mr.  Halley.  I  don't  want  to  seem  to  pry,  but  it  seems  to  me  there 
might  be  a  few  more  papers  in  this  brief  case. 

Mr.  Ben  Eisen.  They  are  mine,  unless  you  want  those  blanks. 

Mr.  Halley.  Not  relating  to  these  clients? 

Mr.  Ben  Eisen.  You  can  look  at  them  if  you  like. 

Mr.  Halley.  No  ;  you  are  testifying  under  oath. 

Mr.  Chairman,  I  respectfully  suggest  that  the  witness  be  excused  for 
the  present  and  that  the  subpena  be  adjourned  sine  die  subject  to 
recall  by  the  committee  at  such  time  as  the  committee  sees  fit. 

The  Chairman.  That  will  be  clone,  but  before  we  do  that,  perhaps 
Senator  Hunt  may  have  a  few  questions  he  wishes  to  ask. 

Senator  Hunt.  No ;  I  haven't  any. 

The  Chairman.  I  have  one  or  two  that  I  would  like  to  ask. 

You  referred  to  Bobo,  I  believe,  as  Joe  Adonis.  Was  that  you  that 
did  that  ? 

Mr.  Ben  Eisen.  Yes,  sir. 

The  Chairman.  Do  you  know  Joe  Adonis? 

Mr.  Ben  Eisen.  Yes,  sir. 

The  Chairman.  How  come  he  was  called  "Bobo"? 

Mr.  Ben  Eisen.  I  believe  "Joe  Doto,"  sir,  was  his  right  name. 

The  Chairman.  Joe  Doto  ? 

Mr.  Ben  Eisen.  His  nickname  is  "Adonis,"  as  far  as  I  know. 

The  Chairman.  Is  he  carried  on  all  of  these  books  as  Joe  Doto 
rather  than  Joe  Adonis  ? 

Mr.  Ben  Eisen.  That  is  right. 

The  Chairman.  Does  the  record  show  what  interest  Joe  Doto  or 
Joe  Adonis  has  now  in  Club  Boheme  or  any  of  these  clubs  that  we  have 
been  talking  about  ? 

Mr.  Ben  Eisen.  Yes,  sir;  the  record  shows  it. 

Mr.  Halley.  When  did  you  last  see  Joe  Adonis  or  Joe  Doto? 

Mr.  Ben  Eisen.  I  don't  think  I  saw  him  this  year  at  all.  I  saw  him 
last  year. 

The  Chairman.  Are  any  other  people  carried  on  here  by  any  other 
than  the  names  by  which  we  know  them?  Frank  Costello,  for  in- 
stance— does  he  have  some  other  name? 

Mr.  Ben  Eisen.  No. 

68958— 50— pt.  1 — —3 


24  ORGANIZED  CRIME    IN   rNTT-ERSTATE    COMMERCE 

Tlie  Chairman.  Or  Frank  Erickson  ? 

Mr.  Ben  Eisen.  No. 

The  Chairman.  There  is  one  point  I  didn't  understand  and  that 
was  your  statement  that  when  a  dividend  was  made  at  the  end  of  the 
season,  when  the  various  interests  were  paid  off,  you  didn't  have  any 
record  to  show  me  how  much  they  were  paid ;  is  that  correct  ? 

Mr.  Ben  Eisen.  No;  I  just  said  that  the — I  wasn't  there  when  any 
dividends  were  paid. 

The  Chairman.  You  said  they  were  paid  in  cash  ? 

Mr.  Ben  Eisen.  That  is  right. 

The  Chairman.  Who  did  the  paying? 

Mr.  Ben  Eisen.  Mr.  Lansky. 

The  Chairman.  Do  you  know  why  they  were  paid  in  cash  rather 
than  by  check? 

Mr.  Ben  Eisen.  No,  sir. 

The  Chairman.  Don't  you  have  any  idea? 

Mr.  Ben  Eisen.  It  seems  to  have  been  the  custom. 

The  Chairman.  Tliere  was  a 

Mr.  Ben  Eisen.  They  paid  that  way  all  the  time.  I  never  ques- 
tioned why  they  didn't  pay  in  checks  or  why  they  paid  in  cash. 

The  Chairman.  The  money  was  kept  in  a  bank,  wasn't  it? 

Mr.  Ben  Eisen.  Yes,  sir. 

The  Chairman.  Who  would  draw  the  money  out  of  the  bank? 

Mr.  Ben  Eisen.  Mr.  Lansky. 

The  Chairman.  And  they  got  the  cash  ? 

Mr.  Ben  Eisen.  Yes,  sir.  It  could  also  have  been  left  in  the  bank- 
roll ;  the  bankroll  cash  that  they  used  daily. 

The  Chairman.  Did  they  have  a  safety-deposit  box  ? 

Mr.  Ben  Eisen.  Yes,  sir. 

The  Chairman.  Where  was  that  box  ? 

Mr.  Ben  Eisen.  At  the  Club  Boheme. 

The  Chairman.  How  about  in  one  of  the  banks? 

Mr.  Ben  Eisen.  I  don't  know. 

The  Chairman.  Do  you  know,  Seymour? 

Mr.  Seymour  Eisen.  No,  sir. 

The  Chairman.  Were  you  ever  there,  Ben,  when  a  dividend  was 
paid  in  cash  ? 

Mr.  Ben  Eisen.  No,  sir. 

The  Chairman.  Were  you,  Seymour? 

Mr.  Seymour  Eisen.  No,  sir. 

The  Chairman.  Do  you  know  why  it  was  paid  in  cash  rather  than 
being  paid  by  check? 

Mr.  Seymoitr  Eisen.  I  don't  know,  sir. 

Mr.  Ben  Eisen.  We  have  never  been  out  there — I  have  never  been 
and  I  know  Seymour  hasn't  been — whenever  they  closed. 

The  Chairman.  Why  would  anyone  pay  in  cash  rather  than  by 
check?  The  money  was  kept  in  the  bank,  wasn't  it,  deposited  in  the 
bank? 

Mr.  Ben  Eisen.  No,  sir. 

The  Chairman.  Tlioy  had  no  bank  deposits? 

Ml'.  Ben  Eisen.  Yes,  but  all  the  money  wasn't  deposited.  The 
bankroll  was  always  kept  in  cash  at  the  casino.  The  only  deposit 
they  made  would  be  for- — if  somebody  y)aid  them  by  check  and  they 
deposited  that  money  in  the  bank,  then  draw  it  out  and  they  would 


ORGANIZED  CRIME    IN    INTERSTATE    COMMERCE  25 

Still  have  that  in  the  bankroll  all  the  time.  When  the  restaurant 
needed  any  money,  they  would  draw  a  check  from  the  casino  and 
deposit  it  in  the  restaurant  account. 

The  CFrAiioiAx.  What  percentage  of  the  money  taken  in  in  the 
joint  o])eration  would  you  say  was  deposited  in  the  bank? 

Mr.  Ben  Eksen.  That  is  hard  to  figure,  sir. 

The  Chairman.  What  is  your  best  guess ;  about  ? 

Mr.  Ben  Eisen.  It  seems  to  me  like  the  amount  of  money  in  the 
bank  was  never  very  much,  because  the  restaurant  was  always  short  of 
money.  The  restaurant  actually  lost  money  every  time  they  operated. 
Seymour  could  ])robably  give  you  a  little  more  information. 

The  CiiAiK.ArAN.  What  is  your  information,  Seymour'^ 

J\Ir.  Seymour  Eisen.  All  the  money  of  the  restaurant  is  deposited 
in  tlie  bank  daily.    The  money  from  the  casino  I  don't  know  about. 

The  Chairman.  The  record  shows  here  that  on  some  days  the 
Casino  won  a  net  of  more  than  $1,000.  Would  that  money  all  be  kept 
together  until  the  end  of  the  season? 

Mr.  Seymour  Eisen.  It  could  possibly  be. 

The  Chairman.  Do  you  know  whether  it  was  or  not  ? 

Mr.  Seymour  Eisen.  No,  sir. 

The  Chairman.  Who  would  have  kept  the  money? 

Mr.  Seymour  Eisen.  Mr.  Lansky. 

The  Chairman.  Did  he  have  a  safe  at  the  Casino  ? 

INIr.  Seymour  Eisen.  There  is  a  safe  at  the  Casino. 

The  Chairman.  Were  you  ever  present  when  a  dividend  was  paid 
at  the  end  of  the  season  ? 

Mr.  Seymour  Eisen.  No,  sir. 

The  Chairman.  Senator  Plunt? 

Senator  Hunt.  For  the  record  I  think  it  ought  to  be  clear  that  if 
you  refer  to  the  bank,  you  don't  mean  tlie  commercial  bank;  you 
mean  the  bank  at  the  Casino? 

Mr.  Ben  Eisen.  No,  sir.  All  the  restaurant  money  was  deposited 
in  the  bank  account  in  the  bank. 

Senator  Hunt.  But  the  money  from  the  Casino  was  not? 

Mr.  Ben  P^isen.  No,  sir. 

Senator  Hunt.  You  have  been  referring  always  to  the  bank  as  the 
bank  of  the  casino,  haven't  you  ?     You  used  the  term  meaning — — 

Mr.  Ben  Eisen.  Bankroll. 

Senator  Hunt.  Meaning  a  bankroll? 

Mr.  Ben  Eisen.   Yes,  sir. 

Senator  Hunt.  I  see. 

The  Chairman.  Ben  and  Seymour,  you  w^ill  be 

Mr.  H ALLEY.  There  is  just  one  other  line  of  questioning  that  was- 
called  to  my  attention. 

You  also  do  the  accounting,  do  you  not,  Ben,  for  the  Hollywood 
Kennel  Club? 

Mr.  Ben  Eisen.  I  am  comptroller  there.  I  am  not  the  accountant. 
We  have  the  accountant  come  in  at  the  end  of  the  season  and  make  up 
the  report  for  the  State  and  for  the  income  tax. 

Mr.  Halley.  You  haven't  yet  given  us  those  records  for  the  Holly- 
wood Kennel  Club. 

Mr.  Ben  Eisen.  No,  I  didn't  bring  any  records  for  the  Hollywood 
Kennel  Club,  but  I  will  be  glad  to. 

Mr.  Halley.  You  will  give  them  to  us  ? 


26  'ORGANIZED   CRIME    IN   INTERSTAT'E    COMMERCE 

Mr.  Ben  Eisen.  Whatever  you  want,  I  will  be  glad  to  have  you 
come  up  and  check  it. 

Mr.  Halley.  Does  Mr.  Erickson  own  any  part  of  the  Hollywood 
Kennel  Club? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  None  whatsoever? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Does  Mr.  Briggs? 

Mr.  Ben  Eisen.  No,  sir. 

Mr.  Halley.  Do  you  know  whether  or  not  Joe  Adonis  is  related  to 
Costello? 

Mr.  Ben  Eisen.  Only  from  the  paper  I  know  he  is  a  nephew. 

Mr.  Halley.  Joe  Adonis  is  Costello's  nephew ;  is  that  right  ? 

Mr.  Ben  Eisen,  Yes. 

The  Chairman.  Did  you  ask  whether  Frank  Erickson  owns  any 
part  of  the  Kennel  Club  ? 

Mr.  Ben  Eisen.  Yes,  sir ;  he  doesn't. 

The  Chairman.  The  record  will  show  who  owns  it. 

Mr.  Ben  Eisen.  Yes,  sir. 

The  Chairman.  How  many  owners  are  there? 

Mr.  Ben  Eisen.  There  are,  I  believe,  six  shareholders. 

The  Chairman.  Can  you  tell  us  who  they  are? 

Mr.  Ben  Eisen.  Yes,  sir.  William  J.  Sims,  Sr. ;  William  J.  Sims, 
Jr. ;  Florence  Strong;  Lee  McKichie ;  Mrs.  Barbara  Roberts ;  and  there 
is  an  old  lady  from  Long  Island  who  has  about  nine  shares.  I  just 
can't  think  of  her  name  right  now,  but  I  will  have  it  for  you  when  you 
need  it. 

There  are  661  shares  in  the  Hollywood  Kennel  Club. 

The  Chairman.  Is  there  anything  further,  Mr.  Halley  ? 

Mr.  Halley.  Yes,  sir;  are  there  any  wire-service  outlets  at  the 
farm  ? 

Mr.  Ben  Eisen.  I  don't  know,  sir. 

Mr.  Halley.  Don't  you  operate  at  the  farm  ? 

Mr.  Ben  Eisen.  No,  sir;  there  is  nothing  operating  at  the  farm. 

Mr.  Halley.  Don't  you  keep  the  books  there? 

Mr.  Ben  Eisen.  We  just  put  them  over  there  for  storage.  After 
giving  up  the  Club  Boheme  lease,  they  took  all  the  stuff  out. 

Mr.  Halley.  Is  it  possible  that  a  wire  service  could  be  operating 
there  without  your  knowledge? 

Mr.  Ben  Eisen.  Sure. 

Mr.  Halley.  Seymour,  do  you  know  whether  or  not  a  wire  service 
operates  at  the  farm? 

Mr.  Seymour  Eisen.  I  don't  know  of  any  wire  service  at  the  farm, 
sir. 

Mr.  Halley.  Thank  you.    That  is  all. 

The  subj)enas  lliut  have  been  served  upon  you,  Ben  and  Seymour, 
are  continuous  in  etl'ect  subject  to  further  order  of  the  committee. 

Mr.  Ben  Eisen.  Right.    Is  there  anything  else  this  afternoon? 

Mr.  Hai>ley.  We  have  some  more  witnesses. 

TESTIMONY  OF  MRS.   HAZEL  HIBBS 

Mr.  Hai,ley.  Will  you  state  your  name? 

Mrs.  Hii5BS.  Mrs.  Hibbs;  Hazel  Hibbs;  H-i-b-b-s. 


ORGANIZED    CKIME    IN   EVTERSTAT'E    COMMERCE  27 

Mr.  Hallet.  What  is  your  address,  Mrs.  Hibbs  ? 

Mrs.  Hibbs.  246  Northwest  Thirty-first  Street. 

Mr.  Halley.  Miami  ? 

Mrs.  Hibbs.  Miami. 

The  Chairman.  Mrs.  Hibbs,  under  the  rules  of  the  committee,  all 
witnesses  have  to  be  sworn.    AVill  you  rise  ? 

Do  you  solemnly  swear  that  the  testimony  you  are  about  to  give 
the  committee  will  be  the  truth,  the  whole  truth  and  nothing  but  the 
truth,  so  help  you  God  ? 

Mrs.  Hibbs.  I  do. 

Mr.  Halley.  IVIrs.  Hibbs,  will  you  tell  us  where  you  are  employed  'i 

Mrs.  PIiBBs.  I  w^ork  for  Louis" Gillman,  Certified  Public  Account- 
ant. 

Mr.  Halley.  Louis  Gillman ;  G-i-1-l-m-a-n  ? 

Mrs.  Hibbs.  That  is  right. 

Mr.  Halley.   Where  is  Air.  Gillin'm's  ofiice  located? 

Mrs.  Hibbs.  1224  Ingraham  Building. 

Mr.  Halley.  Miami  ? 

Mrs.  Hibbs.  Miami. 

]\fr.  Halley.  Do  you  know  whether  or  not  Mr.  Gillman  does  the 
accounting  work  for  a  firm  known  as  the  S  &  G  Investment  Co.? 

Mrs.  Hibbs.  I  have  never  seen  anything  on  it. 

Mr.  Halley.  Have  you  ever  seen  anything  on  the  S  &  G  Syndi- 
cate ? 

Mrs.  Hibbs.  No,  I  haven't. 

Mr.  Halley.  Do  you  know  where  Mr.  Gillman  is? 

Mrs.  Hibbs.  He  went  to  Cuba  today  with  the  Shrine  convention. 

Mr.  Halley.  Is  he  expected  back  ? 

Mrs.  Hibbs.  He  will  be  back  Monday. 

Mr.  Halley.  Will  you  state  where  he  lives  ? 

Mrs.  Hibbs.  I  think  the  address  is  427  Northeast  Twenty-sixth 
Street ;  I  believe  that  is  right. 

JVIr.  Halley.  In  Miami  ? 

Mrs.  Hibbs.  In  Miami. 

Mr.  Halley.  How  long  have  you  worked  for  Mr.  Gillman? 

Mrs.  Hibbs.  About  8  years. 

Mr.  Halley.  In  what  capacity  ? 

Mrs.  Hibbs.  As  his  secretary. 

Mr.  Halley.  How  many  people  are  in  Mr.  Gillman's  office  ? 

Mrs.  Hibbs.  At  the  present  time  I  believe  are  two  young  ladies 
and  about  four  boys ;  about  six  people,  you  might  say. 

Mr.  Halley.  What  are  the  functions  and  duties  of  each  of  the  young 
ladies  ? 

Mi's.  Hibbs.  They  are  typists. 

Mr.  Halley.  Are  they  subordinate  to  you  ? 

Mrs.  Hibbs.  Yes,  sir. 

Mr.  Halley.  And  the  boys  do  what? 

Mrs.  Hibbs.  The  boys  are  auditors. 

Mr.  Halley.  Do  they  work  directly  under  Mr.  Gillman? 

Mrs.  Hibbs.  Yes,  sir. 

Mr.  Halley.  Are  you  generally  familiar  with  Mr.  Gillman's  ac- 
counts. 

Mrs.  Hibbs.  I  know  what  accounts  he  has  and  audits. 


28  ORGAlSriZED    CRIIME    IN   INTERSTATE    COMMERCE 

Mr.  Halley.  Have  you  ever  heard  of  Mr.  Harry  Russell  ? 

Mrs.  HiBBS.  No,  I  haven't. 

Mr.  Halley.  Have  you  ever  heard  of  Mr.  Harold  Salvey  ? 

Mrs.  HiBBS.  No,  I  haven't. 

Mr.  Halley.  Mr.  Charles  Friedman? 

Mrs.  HiBBS.  No ;  I  don't. 

Mr.  Halley.  Mr.  Jules  Levitt  ? 

Mrs.  Hibbs.  No  ;  I  never  heard  of  him. 

Mr.  Halley.  Samuel  P.  Cohen  ? 

Mrs.  Hibbs.  Yes,  I  have. 

Mr.  Halley.  You  have  heard  of  Mr.  Samuel  P.  Cohen  ? 

Mrs.  Hibbs.  Yes,  sir. 

Mr.  Halley.  Is  he  a  client  or  customer  of  Mr.  Gillman's? 

Mi-s.  Hibbs.  I  believe  he  is  a  brother-in-law  of  Mr.  Gillman's.  I 
think  that  is  the  relationship. 

Mr.  Halley.  In  what  business  is  Mr.  Cohen  ? 

Mrs.  Hibbs.  I  honestly  don't  know  what  he  does. 

Mr.  Halley.  Does  Mr.  Gillman  do  any  accounting  for  Mr.  Samuel 
P.Cohen? 

Mrs.  Hibbs.  I  believe  he  made  up  his  income  tax.  That  is  the  only 
thing  I  know  of. 

Mr.  Halley.  Have  you  ever  heard  of  Mr.  Edward  Rosenbaum  ? 

Mrs.  Hibbs.  Yes,  I  clid. 

Mr.  Halley.  Would  you  say  who  he  is  ? 

Mrs.  Hibbs.  I  don't  know  who  he  is.  He  was  in  the  office,  but  that  is 
as  far  as  I  know. 

Mr.  Halley.  Does  Mr.  Gillman  or  his  company  do  any  accounting 
for  Mr.  Edward  Rosenbaum? 

Mrs.  Hibbs.  No.  I  think  several  years  ago  he  made  up  an  inconie 
tax  for  him,  but  not  recently. 

Mr.  Halley.  Has  Mr.  Rosenbaum  been  in  the  office  recently  ? 

Mrs.  Hibbs.  No ;  he  hasn't. 

Mr.  Halley.  Have  you  ever  heard  of  Mr.  Joseph  Friedlander  ? 

Mrs.  Hibbs.  No,  I  don't  know  him. 

Mr.  Halley.  Mr.  Jack  Friedlander? 

Mrs.  Hibbs.  No. 

Mr.  Halley.  Have  you  ever  heard  of  the  wire  service  dealing  with 
horse-race  information  ? 

Mrs.  Hibbs.  No.  My  work  is  strictly  accounting,  and  I  have  charge 
of  tlie  typing  department  and  the  files. 

Mr.  Halley.  Does  Mr.  Gillman  do  the  accounting  work  for  any 
people  in  the  bookmaking  business? 

Mrs.  Hibbs.  No,  I  wouldn't  know  that.  I  wouldn't  know  whether 
he  is  connected  with  bookmaking  or  not. 

Mr.  Halley.  But  you  might  from  the  files  have  noticed  whether  the 
business  of  certain  of  his  customers  was  bookmaking? 

Mrs.  Hibbs.  Not  that  I  know  of.  I  wouldn't  know  whether  he  was 
or  not. 

Mr.  Halley.  I  am  not  quite  sure  I  understand  your  answer.  Is  it 
that  you  wouldn't  know  or  that  you  don't  know  of  any? 

Mrs.  Hibbs.  I  don't  know  of  any. 

Mr.  Halley.  In  other  words,  to  your  best  knowledge,  there  are  no 
customers  or  clients  of  Mr.  Gillman's  who  are  in  the  bookmaking 
business? 


(ORGANIZE©   CRIME    IN   mTERSTATE    C'OMMERGE  29 

Mrs.  HiBBS.  Not  that  I  kilow  of. 

Mr.  Halley.  I  have  no  further  questions,  Mr.  Chairman. 

The  Chairman.  Senator  Hunt? 

Senator  Hunt.  I  have  no  questions. 

The  Chairman.  Thank  you  very  much,  Mrs.  Hibbs. 

TESTIMONY  OF  ABE  ALLENBERG 

Mr.  Halley.  Will  you  state  your  name? 

jNIr.  Allenberg.  Abe  Allenberg. 

Mr.  Halley.  What  is  your  address? 

Mr.  Allenberg.  3301  Collins  Avenue. 

Mr.  Halley.  The  Robert  Richter  Hotel? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Mr.  Allenberg,  will  you  stand  and  hold  up  your 
right  hand  ?  Do  you  solemnly  swear  that  the  testimony  you  will  give 
this  committee  will  be  the  truth,  the  whole  truth  and  nothing  but  the 
truth,  so  help  you  God  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Mr.  Allenberg,  you  were  served  by  me  with  a  subpena 
duces  tecum  ? 

Mr.  Allenberg.  Yes,  sir;  I  was. 

Mr.  Halley.  That  subpena  asked  for  certain  records  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Do  you  care  to  make  a  statement  about  those  records? 

Mr.  Allenberg.  Whatever  papers  I  have  are  over  at  the  Boulevard 
Hotel  in  packages,  because  I  was  at  the  hotel.  My  lease  expired  and 
we  were  moving  out  of  there  and  we  wrapped  everything  up  in  bundles 
and  I  w^ould  have  to  go  over  and  open  the  bundles  and  see  how  many 
papers  I  have  on  the  Tropical  Park  situation.  Tropical  Park  Manor 
and  the  Wofford  Hotel.    All  the  papers  that  I  have  will  be  over  there. 

Mr.  Halley.  These  papers  relate,  do  they  not,  Mr.  Allenberg,  to 
the  ownership  of  certain  interests  in  the  Tropical  Park  Race  Track 
which  was  in  your  possession  as  a  trustee;  is  that  correct? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  to  the  ownership  of  an  interest  in  the  leasehold 
of  the  Wofford  Hotel? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  do  they  also  relate  to  the  ownership  of  the  Boule- 
vard Hotel  ? 

Mr.  Allenberg.  No ;  it  would  be  the  lease  of  the  Boulevard  Hotel. 

Mr.  Halley.  And  to  various  other  ventures  in  which  Mr.  Frank 
Erickson  appears  in  one  way  or  another  ? 

Mr.  Allenberg.  Mr.  Erickson  does  not  appear  in  the  Boulevard 
Hotel  at  any  time. 

The  Chairman.  When  are  you  going  to  get  the  records  ? 

Mr.  Allenberg.  As  soon  as  I  can.  IBy  tomorrow  afternoon  I  will 
try  to  have  them.  The  building  is  closed  up  and  it  is  dark  there  at 
night.    I  will  go  there  tomorrow  morning. 

The  Chairman.  All  right,  sir. 


30  ORGAXIZED    C'RIIME    IN    INTERSTATE    COMMERCE 

TESTIMONY  OF  CHARLES  B.  COSTAR,  ACCOMPANIED  BY 
WILLIAM  G.  WARD,  ATTORNEY 

Mr.  Halley.  Your  full  name  is  Charles  B.  Costar  ? 

Mr.  Costar.  Yes,  sir. 

Mr.  Halley.  Your  address  is  the  First  National  Bank  Building, 
Miami,  Fla  ? 

Mr.  Costar.  Yes,  sir ;  903,  if  you  want  the  room  number. 

The  Chairman.  Mr.  Costar,  do  you  solemnly  swear  that  the  testi- 
mony you  will  give  this  committee  will  be  the  truth,  the  whole  truth, 
and  nothing  but  the  truth,  so  help  you  God  ? 

Mr.  Costar.  I  do. 

Mr.  Halley.  Mr.  William  G.  Ward  is  appearing  as  attorney. 

Mr.  Ward.  Personal  attorney  for  Mr.  Costar. 

Mr  Halley.  What  is  your  address  ? 

Mr.  Ward.  1229  Dupont  Building. 

Mr.  Halley.  Do  you  want  to  make  a  statement,  Mr.  Ward? 

Mr.  Ward.  I  want  to  make  this  statement :  When  Mr.  Costar  called 
me  about  3  :  30,  I  was  advised  by  telephone  at  about  2  o'clock  or  2 :  30 
that  my  associate  Eobert  Ward  came  down  here  and  Mr.  Costar  told 
me  what  the  situation  was.  He  is  an  accountant  here  with  some  large 
practice  and  a  large  office  and  I  told  him  to  get  whatever  files  he  had 
available  and  bring  them  down  even  though  he  was  not  subpenaed. 
So  he  is  here  for  the  purpose  in  his  professional  capacity  of  giving 
you  any  information  he  has,  and  if  you  want  more  files  or  records, 
they  are  available  to  you. 

I  also  want  to  make  this  statement :  With  reference  to  his  constitu- 
tional rights,  not  on  behalf  of  himself  but  on  private  information 
which  he  has  for  some  of  these  clients,  I  assume  the  usual  laws  apply, 
the  same  as  the  other,  and  unless  the  client  himself  claims  immunity, 
he  is  privileged  to  give  whatever  information  he  has. 

The  Chairman.  That  is  our  usual  resolution.  We  appreciate  your 
cooperation,  JNIr.  AVard. 

Mr.  Costar.  Senator,  may  I  say  this  :  I  haven't  yet  received  the  sub- 
pena,  and  as  I  told  you  a  moment  ago,  they  looked  for  me  and  I  wasn't 
there.  My  wife  met  me  at  the  train  and  said,  "They  were  looking 
for  you." 

I  wanted  to  let  you  know  I  want  to  cooperate  with  you. 

The  Chairman.  We  appreciate  that. 

I  think  it  would  be  best  to  serve  a  subpena  on  Mr.  Costar. 

Mr.  Halley.  The  subpena  whicli  you  issued.  Senator  Kefauver, 
was  issued  to  Mr.  William  B.  Deegan.  May  I  amend  it  to  insert  my 
name  instead? 

The  Chairman.  Let  it  be  amended. 

Mr.  Halley.  And  I  will  serve  it  upon  Mr.  Costar.  Would  you 
like  to  read  it,  then  we  can  talk  about  it? 

Mr.  Costar.  I  have  read  the  print.  Now  I  want  to  read  the  type- 
written matter  [reading]. 

All  rjo-lit,  sii'. 

Mr.  IIali,ky.  Did  you  ever  represent  the  Farm  Casino? 

Ml-.  Costar.  Yes,  sir. 

Mr.  Halley.  Do  you  now? 

Mr.  Costar.  Well,  that  operated  on  the — as  I  recall  from  memory, 
it  was  only  ojie  season,  and  Avhen  I  say  "one  season"  I  mean  a  period 


ORGANIZED   CRIME    IN   INTERSTAT'E    COMMERCE  31 

of  4,  5,  or  6  weeks;  maybe  not  tliat  long.  \Vliat  we  call  the  season 
probably  is  anywhere  from  December  through  March  or  April. 

Mr.  Halley.  Were  you  handling  the  accounting  for  the  Farm  Ca- 
sino during  that  period? 

Mr.  CosTAR.  My  office  was;  yes,  sir. 

Mr.  Halley.  Were  you  personally  familiar  with  it? 

Mr.  CosTAR.  We  were  familiar  to  this  extent :  They  gave  us  daily 
reports  of  their  operations  and  from  that  we  wrote  up  records  and 
filed  tlieir  taxes;  their  tax  returns. 

Mr.  Halley.  Wlio  were  the  owners  of  the  Farm  Casino? 

Mr.  CosTAR.  It  was  a  joint  venture  or  partnership  composed  of 

The  Chairman.  Mr.  Costar,  when  did  the  Farm  Casino  operate? 
You  say  it  operated  one  season? 

Mr.  CosTAR.  Yes,  sir. 

Mr.  Halley.  What  season? 

Mr.  CosTAR.  I  will  try  to  tell  you  from  the  file  I  have  on  it.  It  is 
the  only  file.  The  period  January  7  to  April  30,  1944,  and  as  I  recall, 
that  is  the  only  time  it  operated. 

Mr.  Halley.  Do  you  have  the  records  pertaining  to  the  Farm 
Casino  available  now? 

Mr.  CosTAR.  This  is  the  only  thing  I  have,  Mr.  Halley.  This  is  a 
power  of  attorney  and  a  letter  of  protest  protesting  the  findings  of 
the  agent.    Let  me  qualify  that. 

We  have  been  able  to  find  in  the  short  time  I  have  been  in  the  office 
this  afternoon 

Mr.  Halley.  Do  you  liave  the  income-tax  returns  ? 

Mr.  CosTAR.  No,  sir ;  I  don't  have  it  with  me.  We  may  not  have 
it.  As  a  general  rule,  when  the  Treasury  Department  gets  through 
with  the  two  or  three  clients  I  represented  that  are  in  this  business, 
we  destroy  them.  After  the  assessments  have  been  made  of  the  re- 
turns and  the  returns  have  been  examined  and  they  paid  their  de- 
ficiency, if  there  is  any  due,  and  so  forth,  we  just  don't  waste  that 
space. 

Mr.  Halley.  Is  it  your  testimony  that  you  have  destroyed  the  tax 
returns  representing  or  relating  to  the  Farm  Casino? 

Mr.  CosTAR.  Not  until  I  check  further.  I  told  you  I  got  into  my 
office  at  about  3  o'clock  and  we  checked  to  get  as  much  as  I  could 
together  to  come  over  here. 

Mr.  Halley.  Did  you  check  to  see  if  you  had  the  checks  and  tax 
returns  too  relating  to  Farm  Casino? 

Mr.  CosTAR.  No.  All  the  files  and  tilings  I  have  here  and  if  there 
is  anytliing 

Mr.  Halley.  What  files  do  you  have  to  deliver  to  the  committee? 

Mr.  CosTAR.  The  only  one  I  have  is  this  tax  case. 

Mr.  Halley.  Would  you  deliver  that  now  pursuant  to  the  sub- 
pena? 

Mr.  CosTAR.  Yes,  sir;  but  I  would  like  to  have  an  inventory  of  it. 

Mr.  Halley,  That  can  be  done. 

Mr.  CosTAR.  In  detail.    I  would  like  to  have  a  detailed  inventory. 

Mr.  Halley.  Would  you  make  j^our  inventory  and  we  will  cer- 
tify to  it. 

Mr.  CosTAR.  All  right,  sir. 


32  ORGANIZED   CHIME    IN    INTERSTAT'E    COMMERCE 

The  Chairman.  Under  those  conditions,  it  will  be  made  a  part  of 
the  record  and  Mr,  Costar,  we  will  work  with  you  in  getting  any  of 
these  back  to  you  as  quickly  as  possible. 

Mr.  Costar.  Senator,  may  I  say  this:  For  all  or  anything  that  I 
have  in  my  office,  you  don't  have  to  have  a  subpena.  Just  come  and 
get  it,  and  if  you  want  to  have  your  people  come  there  and  work,  I 
will  make  them  comfortable  and  give  them  a  place  to  work  in.  We 
want  to  cooperate  with  you.  We  have  a  number  of  accounts  there 
and  over  the  years  we  have  accumulated  a  lot  of  files. 

Mr.  Halley.  Did  you  ever  represent  Frank  Erickson  personally? 

Mr.  Costar.  No.,  sir.  The  only  way  Mr.  Erickson  has  ever  ap- 
peared in  my  files  was  through  this  Farm  Casino,  he  being  one  of  the 
participants. 

Mr.  Hai.ley.  The  Farm  Casino  is  engaged  in  the  gambling  business  ? 

Mr.  Costar.  Yes,  sir.  It  was  a  joint  venture  composed  of  a  number 
of  men  that  operated  it.  Yes;  they  gambled  out  there.  They  had,  I 
believe,  a  crap  game.  I  was  never  out  there,  and  I  am  talking  from 
hearsay.  I  have  never  seen  the  operation,  but  I  guess  that  would 
cover  it. 

Mr.  Halley.  Do  you  represent  any  other  clients  who  are  in  the 
gambling  business?  I  am  not  confining  my  questions  to  the  matters 
in  the  subpena. 

Mr.  Costar.  Yes,  sir.  I  would  say  that  Charlie  Thomas  would  be 
classified  as  in  the  gambling  business. 

Mr.  Halley.  Would  you  spell  the  name  ? 

Mr.  Costar.  Charles  Thomas. 

Mr.  Halley.  Any  others  ? 

Mr.  Costar.  And  Jack  Friedlander. 

Mr.  Halley.  Do  you  still  represent  those  two  ? 

Mr.  Costar.  Yes,  sir. 

Mr.  Halley,  Any  others  ? 

Mr.  Costar.  Dave  Byer.  He  is  now  deceased.  He  has  been  dead 
for  2  years  this  May — this  month. 

Mr.  Halley.  Any  others? 

Mr.  Costar.  That  is  all  I  can  think  of  right  at  the  moment.  These 
others  that  are  on  here — Padget,  Dyer,  and  Wall — those  fellows  have 
been  in  this  Farm  Casino  I  know  in  operation  with  these  other  men, 
but  individually  and  personally  I  haven't  represented  either  one  of 
those. 

Mr.  Halley.  You  understand  the  question  is  not  confined  to  the 
names  recited  on  the  subpena.  Do  you  represent  any  other  people  at 
all  or  company  whose  venture  is  in  the  gambling  business? 

Mr.  Costar.  There  is  one  that  you  don't  have  on  here  that  comes 
to  my  mind,  and  that  is  Murl  Yarborough — ]M-u-r-l. 

Mr.  Halley.  Could  we  take  these  in  order  and  would  you  state 
their  business.    First  I  think  you  mentioned  Dave  Byer. 

Mr.  Costar.  Yes,  sir. 

Mr.  Halley.  In  wliat  business  is  he? 

Mr.  Costar.  When  he  was  alive  he  was  interested  in  the  operations 
of  Mr.  Thomas,  tlie  same  operations,  and  was  a  partner  in  this  joint 
venture  of  tlie  Farm  Casino. 

Ml-.  Haixey.  What  is  the  present  operation  of  Mr.  Thomas? 

Mr.  Costar.  Mr.  Thomas  didn't  do  anything  this  last  year,  so  far 
as  I  know. 


ORGANIZED   CE'IME    IN   ESTTERSTAT'E    COMMERCE  33 

Mr.  Halley.  What  was  his  last- 


Mr.  CosTxVR.  His  last  operation  that  he  participated  in  was  the 
casino  in  Miami. 

Mr.  Halley.  What  Avas  the  name  of  it  ? 

I^Ir.  CosTAR.  Chib  86. 

Mr.  Halley.  Was  tliat  a  joint  venture? 

Mr.  CosTAR.  Yes,  sir. 

jNIr.  Halley.  Do  you  recall,  without  the  aid  of  a  document,  the 
others  in  the  joint  venture? 

Mr.  CosTAR.  No,  I  don't.  There  are  a  number  of  them,  Mr.  Halley, 
and  I  may  have  overlooked  some  of  them.  Mr.  Thomas  was  in  it, 
Mr.  Friedlander  and  I\Ir.  Yarborough.  I  am  not  sure  whether  Mr. 
Dyer  was  or  not.  I  would  have  to  refer  to  the  record.  There  was  a 
lumiber  of  them. 

I  personally  don't  do  a  lot  of  this  work,  and  I  would  have  to  go  to 
the  records  to  be  sure  that  I  was  telling  you  a  true  statement  of  facts. 

Mr.  Halley.  Are  there  any  other  gambling  businesses  or  ventures 
of  Cliarles  Thomas  wliich  you  recall  now  ? 

Mr.  CosTAR.  Mr.  Halley,  I  believe  he  has  an  interest  in  what  you 
call  the  numbers  game,  but  I  am  not  sure  about  that.  I  would  have 
to  go  to  the  records. 

Mr.  Halley.  For  the  committee's  benefit,  would  you  state  what 
you  mean  by  a  numbers  game  ? 

Mr.  CosTAR.  Just  for  the  lack  of  a  better  name,  perhaps,  in  Cuba 
they  have  a  lottery,  and  they  sell  tickets  here,  as  I  understand,  on 
the  ending  number :  that  is,  from  zero  to  99.  You  can  call  that  bolita 
or  lottery  or  numbers  or  whatever  else.  I  have  heard  this  and  I 
don't  know  from  actual  experience,  but  they  have  a  daily  operation 
that  they  operate,  and  whether  he  is  in  it  or  not,  I  don't  know.  That 
is  something  he  will  have  to  answer  because  I  make  up  his  returns 
strictly  from  the  information  that  he  brings  in  on  those  operations ; 
the  figures  that  they  submit  on  those  operations. 

Mr.  Halley.  You  have  those  records  and  will  turn  them  over  to 
the  committee? 

Mr.  CosTAR.  Yes,  sir. 

Mr.  Halley.  What  are  the  operations  of  Jack  Friedlander? 

Mr.  CosTAR.  Club  86.  Other  than  that  I  don't  know  except  that  in 
preparing  his  return  he  tells  me  that  he  made  this  much  money  here, 
that  much  there  and  elsewhere,  and  that  is  what  we  report  on  the 
return. 

]\Ir.  Halley.  Do  these  people — let  us  say  Friedlander  spcifically — 
give  you  any  records  to  support  their  statements? 

Mr.  CosTAR.  Most  of  their  operations  are  confined  to  joint  ventures 
and  partnerships,  and  the  income  is  from  that  source. 

Mr.  Halley.  Is  the  income  generally  cash  in  the  form  of  bills  rather 
than  bankable  checks? 

Mr.  CosTAR.  In  Club  86,  Mr.  Halley,  we  have  a  very  complete  set  of 
records.  The  other  operations — and  please  make  note  of  this  until  I 
can  verify  it  from  the  records — so  far  as  I  can  recall,  the  other  opera- 
tions are  maintained  by  other  accountants — who  they  are,  I  don't 
know,  but  they  will  come  in  at  the  end  of  the  year  or  at  tax  return  time, 
and  he  will  say,  "This  is  what  I  made  from  this  operation  or  that" 
and  so  on  and  so  forth. 


34  ORGANIZED   CmME    IN   INTERSTATE    COMMERCE 

Senator  Hunt.  May  I  ask:  What  do  you  mean  by  "an  operation"? 

Mr.  CosTAR.  Well,  assuming  that  he  has  an  interest  in  a  baseball 
pool.  I  am  just  using  it  as  an  illustration.  I  don't  know,  Senator. 
He  will  come  in  and  say,  "Charlie,  here  is  what  I  made  on  the  baseball 
pool  last  year."  With  that  in  mind,  I  will  say,  "Who  are  the  part- 
ners," and  he  will  say,  "Just  don't  worry  about  that.  This  is  a  part- 
nership," and  I  will  put  that  down  on  his  return,  or  pass  the  informa- 
tion on  to  my  auditor  to  make  up  his  return. 

The  only  one  I  can  recall  right  now  without  going  to  the  records 
that  we  actually  kept  the  records  on — and  that  is  in  a  strictly  super- 
visory way — we  are  not  there  to  keep  the  detail  of  it — is  the  Club  86. 
The  others  he  brings  the  information  in  to  me. 

Senator  Hunt.  Do  you  know  if  this  Club  86  has  like  games  going 
in  any  other  city  or  any  other  State,  with  a  like  organization  or  a  like 
set-up  ? 

Mr.  CosTAR.  Not  to  my  knowledge.  I  don't  know.  Senator.  I  know 
the  Club  86  operation,  but  other  than  that  I  don't  know  anything 
about  it.  We  have  a  complete  set  of  records  on  their  operation  out 
there. 

Mr.  Hallet.  The  committee  has  seen  a  number  of  complete  sets  of 
records — may  I  interpolate — because  I  am  trying  to  get  your  views 
as  an  expert  rather  than  examining  you  on  anything  that  you  should 
by  inference  think  concerns  you. 

The  committee  has  seen  a  number  of  so-called  complete  sets  of  rec- 
ords which  when  examined  carefully  turn  out  to  be  dependent  upon 
unverified  figures  concerning  the  handling  of  large  amounts  of  cash 
which  never  get  to  a  commercial  bank  and  are  simply  stated  from  day 
to  day  or  week  to  week. 

When  you  refer  to  a  complete  set  of  records,  do  you  go  behind  the 
figures  given  you  concerning  the  handling  of  cash  ? 

Mr.  CosTAR.  No,  sir;  we  don't.  That  would  be  impossible,  Mr. 
Halley,  unless  we  had  a  crap  table  or  a  roulette  table,  but  the  internal 
control  we  have  out  there  is  quite  good. 

Mr.  Halley.  Isn't  it  a  fact  that  in  all  these  gambling  operations  the 
income  day  after  day  is  in  the  form  of  large  amounts  of  cash  which 
are  never  banked  ? 

Mr.  CosTAR.  Well,  no;  I  wouldn't  say  that.  I  would  say — and  I 
think  the  records  will  speak  better  than  I  can  speak — as  I  recall,  their 
routine  is  to'  put  a  large  amount  in  the  bank  every  day  because  they 
always  handle  a  lot  of  checks  and  they  have  to  be  cleared,  and  so  forth. 

Mr.  Halley.  Over  and  above  what  goes  into  the  bank,  isn't  there 
a  large  amount  that  never  does  go  into  the  bank  ? 

Mr.  CosTAR.  I  don't  believe  so,  Mr.  Halley.  I  don't  know.  The 
record  would  have  to  answer  that  for  me.  I  would  like  to  refer  to 
that  instead  of  my  memory. 

Mr.  Hatjley.  Would  you  say  or  do  you  know  it  to  be  a  practice  of 
any  gambling  establishment  to  deposit  each  day  the  total  receipts  of 
tlie  day  before  in  the  bank? 

Mr.  CosTAR.  I  have  advocated  it,  and  up  to  a  point — and  what  that 
point  is  we  will  have  to  get  from  the  record — they  do  deposit  the  day's 
receipts,  whether  in  cash  or  in  checks. 

Mr.  Halley.  Do  you  mean  they  deposit  a  part  of  the  day's  receipts  ? 

Mr.  CosTAR.  They  deposit  the  entire  receipts.  I  have  advocated 
that,  but  whether  they  followed  it  through  or  not,  I  don't  know. 


ORGANIZED    C'R'IME    IN    INTERSTAT'E    COMMERCE  35 

Mr.  Halley.  Did  you  ever  attempt  to  ascertain  whether  any  of  your 
clients  have  taken  that  advice? 

Mr.  CosTAR.  Bear  in  mind  that  the  man  on  my  staff  is  the  man 
doing  the  work.  I  have  tokl  them  that  and  if  they  don't  do  it  100 
percent  of  the  time,  or  90  or  40  percent  or  20  percent — as  I  said,  the 
record  will  speak  for  itself  better  than  I  can  tell. 

Mr.  Halley.  Are  your  men  on  the  premises  each  night? 

Mr.  CosTAR.  No.  sir. 

Mr.  Halley.  Your  men  have  to  take  the  statements  of  the  people 
who  are  there? 

Mr.  CosTAR.  That  is  correct.  We  strictly  prepare  their  returns, 
and  in  the  case  of  Club  86  we  write  up  the  books  and  records  from  the 
daily  sheets  and  reports  that  are  submitted  to  us. 

Mr.  Halley.  Do  you  check  the  records  in  the  case  of  Club  86  and 
any  other  gambling  ventures  which  you  audit  to  ascertain  whether, 
on  the  face  of  the  records,  there  are  not  comparatively  large  sums  of 
cash  which  never  are  deposited  in  the  bank  ? 

IMr.  Costar.  Even  their  records  as  going  into  their  own  bank, 

Mr.  Halley.  What  do  you  mean  by  "their  own  bank"  ? 

Mr.  Costar.  They  are  just  like  a  race  track.  They  operate  on  the 
some  principle.  The  race  track  has  a  bank  roll  that  they  call  the 
B.  K.— $300,000  or  $500,000,  and  they  maintain  that  figure,  or  upward. 
It  may  run  up  to  $500,000.  Let  us  assume  that  they  start  with  a  bank 
roll  of  $300,000.  That  may  be  high  down  here,  or  maybe  $100,000,  but 
the  principle  is  there,  and  if  they  don't  deposit  it,  it  will  increase  their 
bank  roll. 

]\f r.  Halley.  That  is  in  the  form  of  cash  on  hand  ? 

Mr.  Costar.  Yes. 

Mr.  Halley.  Which  they  record  but  keep  on  the  premises? 

Mr.  Costar.  Yes.  It  is  kept  in  the  armored  truck.  The  armored - 
truck  people  handle  it. 

Mr.  Halley.  Where  do  the  armored-truck  people  put  it? 

Mr.  Costar.  In  the  safety-deposit  vault.  I  know  they  are  insured 
and  they  are  responsible  for  it. 

Mr.  Halley.  Do  you  mean  that  all  cash  on  the  premises  each  night 
is  delivered  to  the  armored  truck  ? 

Mr.  Costar.  Oh,  yes. 

Mr.  Halley.  They  do  not  have  vaults  of  their  own? 

Mr.  Costar.  They  have  a  small  safe  out  there,  but  this  bank  roll  I 
have  been  told  has  been  turned  over  to  the  armored-truck  people. 

Mr.  Halley.  Who  are  the  armored-truck  people  ? 

Mr.  Costar.  The  only  one  here  is  Rolfe  Armored  Truck. 

Mr.  Halley.  How  do  you  spell  it? 

Mr.  Costar.  R-o-l-f-e."^ 

Mr.  Halley.  Do  they  service  the  various  gambling  establishments? 

Mr.  Costar.  I  don't  know.  I  know  they  service  the  Club  86.  That 
is  the  only  armored-truck  service  I  know  of,  and  I  would  say  they 
service  all. 

Mr.  Hai^ey.  From  a  tax-accounting  standpoint,  the  practice,  if  it 
does  exist,  of  having  sums  of  cash  which  are  not  deposited  in  the  com- 
mercial bank  daily  would  leave  the  possibility  of  having  income  which 
would  not  be  reported  or  recorded  in  any  way,  would  it  not  ? 

Mr.  Costar.  No. 


'36  ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE 

Mr.  Halle Y.  How  is  it  subject  to  control?  Aren't  you  depending 
on  what  you  are  told  by  your  client  ? 

Mr.  CosTAR.  I  just  told  you  that  they  start  with  a  bank  roll  of  $300,- 
000  or  whatever  it  may  be.  That  fluctuates  either  up  or  down  either 
in  the  bank  or  on  deposit  in  the  cash  account. 

Mr.  Halley.  On  a  particular  day,  say  January  2  or  3  of  1950,  the 
bank  roll  starts  at  $300,000,  and  from  the  night's  operations  they 
make  $15,000.  Is  there  any  way  in  the  world  to  show  whether  they 
have  $15,000  or  whether  they  put  in  their  own  records  $10,000  and 
kept  $5,000  in  their  safe  or  in  their  pocket  ? 

Mr.  CosTAR.  I  think  I  answered  that  a  moment  ago  when  I  said  there 
was  an  internal  control. 

Their  procedure  is  that  they  have  a  money  room,  the  same  as  a  race 
track  operates,  and  that  money  is  put  in  there.  The  table  is  set  up, 
and  I  get  the  procedure,  and  they  charge  that  operator  with  so  much 
money.  They  put  whatever  is  necessary  to  give  him  enough  change. 
He  sells  chips.  If  he  gets  too  much  money  on  the  table  he  turns  it 
into  the  money  room,  or  he  puts  the  cash  in  a  little  slit  and  it  drops 
down  into  a  box.  Then  somebody  comes  around  and  opens  the  box 
with  a  key.  They  don't  operate  that  way  around  here.  I  have  never 
seen  that. 

Mr.  Halley.  Suppose  he  sells  $100  worth  of  chips. 

Mr.  CosTAR.  His  money  is  lying  in  a  box. 

Mr.  Halley.  And  that  is  emptied  from  time  to  time  ? 

Mr.  CosTAR.  Yes,  sir. 

Mr.  Halley.  And  if  he  wins,  there  are  chips  back  on  the  next  play. 
There  is  no  record  of  that,  is  there  ?  Does  he  keep  any  record  of  each 
play  ? 

Mr.  CosTAR.  No. 

Mr.  Halley.  He  could  deal  $100  worth  of  chips  over  and  above  that 
all  night  long  and  there  would  be  no  way  to  tell  whether  he  sold  his 
$100  worth  of  chips  10  times  or  a  hundred  times. 

Mr.  CosTAR.  Sure.  If  he  starts  with  $5,000  and  he  ends  up  with 
$30,000,  he  must  have  won  $25,000. 

Mr.  Halley.  You  can't  tell  that  if  they  empty  the  money  as  it  is 
won,  which  goes  into  a  drawer  periodically  and  emptied  by  one  of  the 
employees  of  the  house. 

Mr.  CosTAR.  But  a  record  is  kept  in  the  money  room. 

Mr.  Halley.  Wliat  happens  to  the  money  in  between  ? 

Mr.  CosTAR.  They  receipt  him  for  what  they  have  taken  off. 

Mr.  Halley.  Do  they  give  the  teller  a  cash  receipt? 

Mr.  CosTAR.  Yes. 

Mr.  Halley.  What  does  he  do  with  those  receipts? 

Mr.  Costar.  I  don't  know. 

Mr.  Halley.  Do  you  get  them? 

Mr.  CosTAR.  No;  I  don't.  We  don't  get  them.  They  keep  that 
record  of  what  they  put  out  in  addition  to  any  money  they  advance, 
and  by  the  same  token  they  keep  a  record  of  what  they  take  off. 

Let  us  assume  that,  following  througli  your  questioning,  we  put 
$5,000  on  and  lie  loses  it  in  some  dice  game.  Some  guy  comes  along 
and  wins  it  and  they  have  to  pay  him  off.  So  they  will  draw  an  addi- 
tional $25,000  from  the  money  room  and  it  is  charged  to  the  table. 
So  the  money  room  is  your  control.     There  would  have  to  be  collusion 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  37 

between  your  operator  and  the  tellers  in  the  money  room  and  the  audi- 
tor, or  whoever  it  is  in  charge  of  the  records  at  the  casino. 

Mr.  Halley.  Is  there  an  auditor  at  these  casinos? 

Mr.  CosTAR.  They  have  a  man  there  who  does  all  of  that. 

Mr.  Halley.  Who  is  the  man  at  Club  86  ? 

Mr.  CosTAR.  I  don't  know,  but  I  think  Ashley  was  the  one  that  did  it 
the  last  time. 

Mr.  Halley.  What  is  Ashley's  full  name? 

Mr.  CosTAR.  Tom  is  his  full  name — ^Tom  Ashley. 

JNlr.  Halley.  Wliat  does  Tom  Ashley  do?  Doesn't  he  get  a  slip 
periodically  from  the  owners  telling  him  what  the  net  income  or  loss 
from  each  form  of  gambling  is  ? 

Mr.  CosTAR.  Not  to  my  knowledge.  The  people  I  have  represented 
have  never  done  anything  like  that.  They  just  take  it  as  it  comes. 
There  are  so  many  partners  that  it  is  impossible  to  work  it  that  wa.y. 

Mr.  Halley.  Let  me  ask  you  a  hypothetical  question  and  see 
whether  you  would  consider  the  following  methocl  of  operation  a 
proper  one.  Suppose  the  moneys  were  deposited  in  the  cashier's  cage 
through  the  course  of  any  evening,  and  at  the  end  of  the  night  it  was 
counted  by  the  owner  of  the  house  who  kept  a  private  record  and 
turned  that  record  over  to  the  auditor  only  at  the  end  of  the  year. 
Would  you  say  that  would  be  a  proper  mode  of  operation? 

Mr.  Costar.  No  ;  I  wouldn't  say  that  would  be  proper  because — well, 
if  the  individual  was  reliable,  it  would  be.  But  I,  as  an  accountant, 
couldn't  accept  that  without  some  qualification.  At  Club  86  we  don't 
have  that. 

Mr.  Halley.  What  qualification  would  you  require  in  order  to 
accept  it? 

Mv.  CosTAR.  At  Club  86? 

Mr.  Halley.  Yes. 

Mr.  CosTAR.  To  begin  with,  you  have  many  partners — 8,  10,  or  12 — 
I  don't  know  how  many  without  referring  to  the  records,  and  you  have 
a  number  of  people  that  this  money  goes  through  and  the  record  goes 
through  their  hands.  You  would  have  to  have  collusion  among  a  great 
many  people  before  you  could  do  that. 

Mr.  Halley.  The  individual  who  handles  each  table  is  not  aware 
of  the  total  ? 

]Mr.  CosTAR.  No. 

Mr.  Halley.  So  far  as  he  know^s,  the  table  next  to  him  might  be 
having  losses  while  he  is  winning  ? 

Mr.  Costar.  He  doesn't  know.  It  is  all  cleared  through  the  money 
room. 

Mr.  Halley.  And  the  man  that  does  the  counting  in  the  money  room 
doesn't  keep  these  individual  slips  that  are  handled — these  receipts — 
to  the  tellers  ? 

Mr.  CosTAR.  Until  the  end  of  the  day.  Then  he  makes  his  recapitula- 
tion. 

Mr.  Halley.  So  that  if  the  man  in  the  money  room  and  the  partner — 
if  there  is  any  collusion,  the  addition  at  the  end  of  the  day  is  whatever 
they  want  it  to  be. 

Mr.  CosTAR.  They  would  have  to  be  stealing  from  each  other,  or  one 
would  be  taking  advantage  of  the  other. 

Mr.  Halley.  Not  if  they  split  evenly. 


38  ORGANIZED   CRIME    IN   INTERSTATE    COMMERCOE 

Mr.  CosTAR.  I  am  satisfied  that  with  the  way  that  is  controlled  out 
there,  that  couldn't  happen.  The  same  thing  would  apply  to  a  race 
track. 

Mr.  Halley.  You  haven't  convinced  me  that  there  is  any  way  in 
the  world,  when  you  have  a  man  who  is  not  one  of  your  auditors  who 
is  working  for  the  people  who  run  this  place  to  sit  in  a  game  and  count 
the  money  and  then  destroys  all  slips  at  the  end  of  the  day.  I  am  not 
satisfied  that  there  is  any  way  in  the  world  to  keep  him  from  marking 
down  the  total  for  the  day  and  any  figures  that  his  boss  wants  him  to 
mark  down. 

Mr.  CosTAR.  We  must  rely  on  honesty,  which  your  records  prove  most 
people  are.  Secondly,  when  you  deal  with  a  lot  of  people  or  more  than 
two  people,  you  get  into  a  lot  of  trouble  and  collusion  and  conniving 
and  scheming,  and  thirdly,  somewhere  along  the  line  they  would  trip 
themselves.  There  are  three  major  factors  that  are  against  that.  It 
may  happen.    I  am  not  saying  it  doesn't,  but  I  think  it  is  impractical. 

Mr.  Halley.  But  you  have  heard  of  it  actually  happening  ? 

Mr.  CosTAR.  I  never  heard  of  it  happening  with  that  number  of 
partners  they  have  out  there,  or  any  other  operation  elsewhere.  I 
have  never  heard  of  it. 

Mr.  Halley.  Have  you  never  heard  of  money  being  taken  off  the 
top  at  a  gambling  house  ? 

Mr.  CosTAR.  Yes,  but  I  say  where  you  had  collusion  with  8  or  10 
partners  or  more,  plus  the  men  that  work  for  you. 

Mr.  Halley.  You  need  only  the  collusion  of  one  man  and  that 
is  the  man  that  does  the  counting  in  the  cage. 

Mr.  CosTAR.  You  need  more  collusion  than  that  if  you  understand 
accounting. 

Mr.  Halley.  With  all  these  games  going  and  a  lot  of  receipts  being 
handled,  no  two  men  in  the  room  have  any  idea  of  the  total  because 
the  man  at  one  table  is  busy  and  he  can't  watch  any  other  table  but 
his  own. 

Mr.  CosTAR.  I  don't  know. 

Mr.  Halley.  The  receipts  are  all  torn  up.  If  you  kept  the  receipts 
permanently  you  might  have  some  check,  but  the  very  fact  that  the 
receipts  are  torn  up  at  the  end  of  the  day  indicates  a  desire  to  elimi- 
nate the  possibility  of  a  check. 

Mr.  CosTAR.  I  don't  think  they  are  torn  up.  I  am  not  out  there. 
They  may  hold  them  for  a  week  or  2  weeks  or  will  hold  them  8  weeks. 
I  don't  know  how  long. 

All  I  know  is  that  they  give  us  a  recapitulation,  and  that  is  the 
basis  on  wliich  we  make  up  the  tax  return  and  write  the  report  on. 
Have  you  ever  been  in  a  gambling  casino? 

Mr.  Halley.  If  you  don't  mind,  I  will  ask  the  questions. 

Mr.  CosTAR.  When  I  said  it,  I  realized  what  I  had  said,  I  am  sorry. 

Mr.  Halley.  Let's  keep  the  questions  on  this  side. 

Mr.  CosTAR.  I  was  going  to  preclude  explaining  how  a  casino 
operates. 

Mr.  Hall?:y.  I  have  read  books  on  it. 

Mr.  C'osTAR.  If  you  want  to  take  it  off  the  record 

Mr.  Halley.  (io  ahead  and  explain  it  for  tlie  record  because  T 
tliink  that  is  important.  You  are  not  answering  the  questions  for  my 
benefit,  but  for  tlie  ])enefit  of  the  committee  and  for  the  record  and 
we  are  trying  to  get  the  benefit  of  your  expert  knowledge  on  it  to 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  39 

ascertain  Avliether  or  not  this  type  of  operation  can  possibly  be  con- 
trolled so  that  when  the  tax  point  of  view  is  concerned,  there  is  a 
proper  safeguard  for  the  j^ublic, 

Mr.  CosTAR,  Mr.  Halley,  at  Clnb  86 — and  I  have  been  in  jnst  a 
couple  of  them  in  my  time,  they  have  a  something  built  around  the 
wall  with  peepholes  that  look  like  air  conditioning  holes  or  whatever 
you  want  to  call  them. 

They  have  men  stationed  up  there  to  watch  these  operators,  and  they 
also  have  over  each  crap  table,  the  times  that  I  have  been  in  the  casino, 
which  hasn't  been  too  many  in  my  time — I  have  just  visited  them,  they 
have  a  man  standing  on  a  ladder  or  whatever  you  want  to  call  it. 
The  scene  is  familiar  and  he  looks  down  and  he  is  watching  those 
players.  You  say  to  me,  "Why  do  they  do  that?"  For  two  reasons: 
first,  to  make  sure  that  the  operator  is  not  clipping  them,  and  second 
to  see  that  there  is  not  a  lot  of  phoney  dice  being  thrown  by  the  players. 
Beyond  that  I  don't  know  what  the  purposes  are,  but  that  is  a  safe- 
guard that  is  in  most  casinos. 

You  have  men  hidden  behind  this  wall — at  the  Club  86  I  am  talking 
about — plus  the  man  that  stands  on  the  ladder.  They  then  change  those 
men  periodically  often  during  the  evening.  How  long  they  stay  on 
the  ladders  at  a  time  I  don't  know,  but  Joe  Doakes  will  be  here  for 
10  minutes  and  Paul  Smith  will  be  at  the  same  latter  for  another 
10  minutes.    That  is  another  safeguard. 

Mr.  Halley.  That  is  all  very  carefully  described  in  an  article  in 
The  Saturday  Evening  Post  about  2  weeks  past  dealing  with  Reno, 
and  it  corroborates  what  you  said. 

Mr.  CosTAR.  I  have  never  been  there. 

Mr.  Halley.  Aren't  they  there  to  see  that  the  individual  players  and 
dealers  don't  cheat  the  house  ? 

Mr.  Costar.  That  is  right. 

Mr.  Halley.  For  instance,  a  particular  player  who  happens  to  be  a 
friend  of  a  dealer,  they  want  to  make  sure  that  he  doesn't  win  too 
often. 

Mr.  Costar.  That  is  right. 

Mr.  Halley.  But  that  very  safeguard  makes  it  so  difficult  for  the 
dealer  to  pocket  the  money  that  it  is  not  really  necessary  for  them  to 
follow  through  with  this  system  of  receipts  and  checks  on  their  own 
people  very  carefully.  They  are  watching  their  own  people  very 
carefully  by  watching  and  not  by  bookkeeping. 

Mr.  Costar.  You  have  a  thought  there,  but  if  you  are  the  dealer  and 
I  am  the  money-room  man,  I  check  you  out,  and  there  is  my  auditor 
back  here,  and  when  he  gets  through  at  the  end  of  the  day  and  he 
has  checked  you  and  given  you  $50,000  for  that  table  tonight,  you  had 
better  check  in  with  $50,000  or  show  you  paid  out  $50,000  plus  your 
winnings.   That  is  what  he  goes  by. 

Mr.  Halley.  There  are  seven  other  tables  ? 

Mr.  Costar.  Yes. 

Mr.  Halley.  It  all  gets  counted  up  rather  carefully  in  the  counting 
room  ? 

Mr.  Costar.  That  is  right. 

Mr.  Halley.  And  the  owner  or  the  partners — two  or  three  of  them — 
are  in  there  with  one  low-paid  employee  who  is  called  an  auditor,  and 
he  writes  down  the  figures. 

68958—50 — pt.  1 4 


40  ORG'ANIZED    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  CosTAR.  I  wouldn't  say  lie  is  low  paid,  and  I  don't  know 
that  there  are  three  or  four  partners.  I  have  never  been  there  at 
the  time  of  morning  when  they  close. 

Mr.  Halley.  How  can  you  say  that  you  are  sure  that  the  system 
works  if  you  have  never  been  there  to  see  the  accounting?  Isn't  it 
apparent  that  if  one  or  two  men  are  counting  and  calling  off  figures 
to  an  auditor  and  they  tear  up  the  receipts  as  they  go,  they  can  pretty 
well  tell  the  auditor  what  they  want  ? 

Mr.  CosTAR.  The  auditor  doesn't  get  it  that  way.  The  man  in  the 
money  room  is  charged  up  with  the  money  he  has  turned  out  or  sent 
out  and  he  has  to  get  it  back  or  get  receipts  for  it  and  he  makes  his 
daily  report,  and  then  it  goes  to  his  auditor  or  whoever  keeps  the 
recap  sheet. 

Mr.  Halley.  Who  is  the  money  man  ? 

Mr.  CosTAR.  The  man  in  charge  of  the  money  room. 

Mr.  Halley.  Is  he  an  accountant  or  is  he  one  of  the  partners. 

Mr.  CosTAR.  I  don't  know.  I  have  never  been  in  there  in  the  morn- 
ing when  they  closed  up.     I  couldn't  answer  that. 

Mr.  Halley.  I  don't  think  I  have  any  further  questions,  Mr.  Chair- 
man. 

The  Chairman.  Mr.  Halley,  what  about  the  records  and  all  that? 

Mr.  Halley.  We  are  going  to  collect  them  tomorrow  and  any  rec- 
ords you  have  you  will  turn  over  to  the  committee's  investigator; 
is  that  right  ? 

Mr.  CosTAR.  Yes,  sir.  Can  I  ask  you  a  question  on  that?  There 
are  a  number  of  records  and  files.  Rather  than  inventory  those  files, 
I  would  like  to  have  your  re])resentatives  work  in  my  office,  if  possible. 

Mr.  Halley.  We  would  like  to  have  the  records  at  least  long  enough 
to  study  them  in  our  own  office,  so  perhaps  the  best  thing  is  to  inventory 
them. 

Mr.  CosTAR.  It  is  going  to  take  some  time ;  a  few  days  to  get  them 
together. 

Mr.  Halley.  You  can  generally  inventory  a  file  that  big  in  an  hour 
by  just  picking  up  a  paper  and  dictating  from  it. 

Mr.  CosTAR.  You  are  welcome  to  it.  It  is  not  a  question  of  not 
turning  it  over. 

The  Chairman.  Suppose  w^e  have  someone  meet  with  you  in  the 
morning  and  see  what  can  be  done. 

Mr.  Halley.  There  will  be  somebody  in  your  office  at  what  time  ? 

Mr.  CosTAR.  We  get  in  there  on  Saturday — I  only  have  one  young 
lady  come  in  and  one  of  the  men.  We  don't  work  on  Saturdays  except 
to  keep  the  office  open  with  a  skeleton  crew. 

Mr.  Halley.  I  think  it  can  be  done  on  Monday.  It  will  probably 
be  Mr.  Rice. 

Mr.  Halley.  Were  any  of  the  Friedlander  operations  outside  of 
the  State  of  Florida  or  were  they  all  local? 

Mr.  CosTAR.  Mr.  Halley,  I  couldn't  answer  that  truthfully.  I 
would  just  guess. 

Mr.  Halley.  Would  the  records  show  it? 

Mr.  CosTAR.  I  am  not  too  sure  about  that.  He  might  have  said 
"XYZ"  partnership  and  we  wouldn't  have  asked  for  an  address. 
On  the  other  hand,  I  think  the  address  is  required  on  the  tax  returns, 
and  I  think  they  would  show  the  address. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  41 

Mr.  Halley.  May  I  ask  whether  after  you  have  produced  these 
records,  if  Mr.  Rice,  assistant  counsel  to  the  committee,  has  any  ques- 
tions, you  wouhl  have  any  objection  to  answering  them  ? 

Mr.  CosTAR.  No ;  I  will  be  glad  to.  Let  me  repeat  again :  I  will 
cooperate  with  you  in  every  way  I  can, 

Mr,  Halley,  Thank  you. 

Mr.  CosTAR.  You  don't  have  to  subpena  me  or  threaten  me.  I  am 
willing  to  cooperate  with  you  and  I  want  you  to  have  the  information 
that  you  want. 

Mr.  Halley.  Thank  you  very  much. 

The  Chairman.  Is  there  anything  further,  Mr,  Halley  ? 

Mr,  Halley,  No,  sir. 

The  Chairman.  Do  you  have  any  questions,  Senator  Hunt  ? 

Senator  Hunt.  I  have  no  questions. 

The  Chairman.  Thank  you,  Mr.  Costar. 

The  committee  will  stand  adjourned  until  9  a.  m.  tomorrow  morning. 

(Whereupon  the  committee  adjourned  at  5:55  p.  m.  until  the  fol- 
lowing morning.) 


INVESTIGATION  OF  OEGANIZED  CKIME  IN  INTERSTATE 

COMMEECE 


SATURDAY,  MAY  27,   1950 

United  States  Senate, 
Special  Committee  To  Investigate  Organized  Crime 

IN  Interstate  Commerce, 

Miami^  Fla. 
The  committee  met,  pursuant  to  adjournment,  in  the  courtroom  of 
the  United  States  district  court,  at  9  a.  m.,  Senator  Estes  Kefauver 
(chairman)  presiding. 
Present:  Senators  Kefauver  and  Hunt. 
Also  present :  Rudolph  Halley,  chief  counsel. 

TESTIMONY  OF  KALPH  M.  HART,  ACCOMPANIED  BY  MR. 
CHAPPELL,  ATTORNEY 

Mr.  Halley.  Will  you  state  your  full  name  and  address  ? 

Mr.  Hart.  Ralph  M.  Hart,  211  Eclgewood  Drive,  West  Palm  Beach, 
Fla. 

The  Chairman.  Mr.  Hart,  will  you  stand  and  be  sworn,  please  ? 

Do  you  solemnly  swear  that  the  testimony  you  will  give  this  com- 
mittee will  be  the  truth,  the  whole  truth,  and  nothing  but  the  truth, 
so  help  you  God  1 

Mr.  Hart.  I  do. 

Mr.  Halley.  A  subpena  was  served  upon  you  yesterday  to  produce 
certain  records,  was  it  not  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  The  subpena  asked  for  all  records  relating  to  John  F. 
O'Rourke,  Frank  Erickson,  and  Mickey  Cohen? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Have  you  brought  such  records  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Would  you  produce  them  now  for  the  committee? 

Mr.  Hart.  Here  is  the  bank  statements  from  1943  to  1949,  and  such 
deposits  slips  as  were  in  my  possession. 

The  Chairman.  Mr.  Counsel,  I  didn't  understand.  Is  Mr.  Hart 
an  auditor  or  a  public  accountant  ? 

Mr.  Hart.  I  am  a  certified  public  accountant ;  yes,  sir. 

The  Chairman.  And  your  office  is  here  in  Miami  ? 

Mr.  Hart.  No,  sir.  My  office  is  in  310  Citizens  Building,  West 
Palm  Beach,  Fla. 

The  Chairman.  Mr.  Chappell,  you  are  from  West  Palm  Beach? 

Mr.  Chappell.  I  am  from  Miami. 

43 


44  ORGANIZED   CKIME    IX   INTER  STATE    COMMERCE 

Mr.  Hart.  These  are  my  tax  files,  which  is  the  only  work  I  do  for 
Mr.  O'Rourke.  I  have  the  quarterly  wage  reports  which  I  prepared 
for  him,  and  the  income-tax  returns. 

Mr,  Halley.  Do  you  do  any  work  for  Mr.  Erickson  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley,  I^  rank  Erickson  ? 

Mr.  Hart,  No,  sir. 

Mr.  Halley,  You  work  only  for  O'Eourke? 

INIr.  Hart.  Yes,  sir. 

Mr.  Halley.  Do  you  know  whether  he  uses  the  services  of  any  other 
auditor  or  accountant? 

Mr.  Hart.  Mr.  O'Rourke? 

Mr.  Halley.  Yes. 

Mr.  Hart.  Not  that  I  know  of. 

Mr.  Halley.  Do  you  handle  all  his  work  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Wliat  is  his  business  ? 

Mr.  Chappell.  Go  ahead  and  tell  him, 

Mr.  Hart.  I  think  he  operates  a  handbook.     That  is  what  we  call  it. 

Mr.  Halley.  Where  does  he  operate  it  ? 

Mr.  Hart.  West  Palm  Beach. 

Mr.  Halley.  What  is  a  handbook ;  would  you  state  it  just  generally  ? 

Mr.  Hart.  He  books  horse  bets. 

Mr.  Halley.  And  does  he  lay  off  his  bets  with  anybody  ? 

Mr.  Hart.  Yes;  he  does. 

Mr.  Halley.  With  whom  ? 

Mr.  Hart.  I  don't  know  whether  I  can  say  as  to  that.  My  work  is 
income-tax  work.  He  has  lay-off  bets  and  action  and  pay-off  bets  and 
checks  with  various  people,  and  I  don't  know  any  of  them. 

Mr.  Halley.  What  names  appear  in  the  checks  and  records. 

The  Chairman.  Mr.  Hart,  I  think  we  will  get  along  better,  and 
your  attorney  will  tell  you  so,  if  you  tell  vis  without  any  reluctance 
what  you  know  about  that. 

Mr,  Chappell,  He  is  willing  to  do  that. 

Mr.  Hart,  I  will  be  glad  to  do  that. 

The  Chairman.  We  don't  have  to  go  by  the  strict  rules  that  are 
observed  in  a  court.  This  is  not  a  criminal  trial.  We  are  making  a 
senatorial  inquiry  to  see  what  the  picture  is  and  what  kind  of  legisla- 
tion we  want  to  recommend  to  the  Senate.  So,  we  would  appreciate 
your  cooperation. 

As  I  said,  we  are  not  bound  by  the  strict  rules  of  evidence  that  pre- 
vail in  courts  in  which  you  have  had  some  experience.  We  will  make 
better  time  and  we  will  understand  that  some  of  this  may  be  second- 
hand information  that  you  tell  us,  or  other  than  of  your  own  knowl- 
edge.    So,  I  thought  I  would  like  to  make  that  explanation  to  you, 

Mr,  Hart.  I  don't  know  enough  about  his  operations  to  say  who  he 
lays  off  bets  to. 

Mr,  Halley,  Certain  names  appear.  Would  you  name  the  people 
with  whom  he  does  business? 

Mr,  Hart,  He  has  done  lots  of  business  with  Mickey  Cohen.  He 
has  had  business  transactions  with  Frank  Erickson.  Those  two  names 
appear  on  my  subpena. 

Mr.  Halley.  Do  any  other  names  occur  to  you  besides  those  which 
were  given  to  you  on  the  subpena  ? 


ORGANIZED   CR'JME    IN   ESPTERSTAT'E    COMMERCE  45 

Mr.  Hart.  Well,  you  know  those  things  are  not  important  for  my 
work.    I  have  them  in  my  files. 

Mr.  Halley.  Mr.  Hart,  bear  this  in  mind :  Following  up  what  Sen- 
ator Kefauver  said,  you  have  given  us  just  the  two  names  we  have 
reason  to  believe  you  know  about.  I  don't  consider  that  cooperative 
spirit.  It  seems  to  me  that  relying  only  on  that  and  not  remembering 
at  this  point  isn't  very  convincing.  There  must  be  other  people.  A 
man  can't  operate  a  handbook  and  lay  offs  just  in  that  way. 

Mr.  Hart.  There  are  other  people. 

Mr.  Halley.  Who  are  they  ? 

Mr.  Hart.  I  don't  know. 

Mr.  Halley.  Have  you  any  idea? 

Mr.  Chappell.  How  long  would  it  take  you  to  look  at  your  records 
and  find  out? 

Mr.  Hart.  I  can  look  through  them  very  quickly  and  find  out.  I 
don't  remember  these  people's  names.    I  don't  know  them. 

Mr.  Halley.  Go  ahead  and  refresh  your  recollection, 

Mr.  Hart.  I  recall  a  list  of  checks  payable  to  one  man,  that  the 
checks  were  borrowed  by  the  Treasury  Department,  and  I  have  their 
receipt  for  them.    I  can't  recall  the  man's  name.    It  was  Luke  Church. 

Mr.  Halley.  Where  is  Luke  Church  located  ? 

Mr.  Hart.  Luke  Church — I  don't  know  the  man.  All  I  have  here  is 
this  receipt  for  canceled  checks  that  I  gave  the  Treasury  Department. 
I  have  three  pages  of  it. 

Mr.  Chappell.  I  think  he  is  from  Miami. 

The  Chairman.  Mr.  Chappell  thinks  he  is  from  Miami. 

Mr.  Chappell.  We  feel  that  he  lives  in  Miami  here. 

Mr.  Halley.  Mr.  O'Rourke  will  be  in  to  give  us  that  information. 

The  Chairman.  He  hasn't  had  time  to  look  and  see  any  others. 

Mr.  Hart.  I  will  have  to  go  to  the  canceled  checks  to  do  that.  I 
don't  know  the  names.    They  are  in  there  but  I  don't  know  the  names. 

Mr.  Halley.  May  I  suggest  that  we  take  the  testimony  and  per- 
haps while  Mr.  O'Rourke  is  testifying  Mr.  Hart  can  look  through 
the  checks  and  resume  the  stand  later  ? 

The  Chairman.  So  ordered. 

Mr.  Halley.  Does  Mr.  O'Rourke  have  a  partner  in  the  handbooks  ? 

Mr.  Hart.  No,  sir ;  he  does  not. 

Mr.  Halley.  He  owns  that  himself? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Does  he  have  any  other  businesses  ? 

Mr.  Hart,  No  other  business  activities  that  I  know  of. 

Mr.  Halley.  Does  he  operate  any  business  at  the  Boca  Raton  Hotel  ? 

Mr.  Hart.  Not  at  the  present  time ;  no. 

Mr.  Halley.  Did  he  at  one  time  ? 

Mr.  Hart.  Yes,  sir.  He  operated  a  business  that  developed  recently ; 
that  he  operated  a  business  there  during  two  winter  season  with  that 
New  York  man — what's  his  name  again  ? 

Mr.  Halley.  Frank  Erickson? 

Mr.  Hart.  Frank  Erickson. 

Mr.  Halley.  Have  you  met  Frank  Erickson  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  What  business  did  he  operate  at  Boca  Raton  ? 

Mr,  Hart.  They  booked  horse  bets. 


46  ORGANIZED  CRTME    IN   KSTT'ERSTAT'E    COMMERCE 

The  Chairman,  Louder,  Mr.  Hart. 

Mr.  Hart.  They  booked  horse  bets. 

Mr.  Halley.  From  the  guests  of  the  hotel  ? 

Mr.  Hart.  Well,  I  would  have  to  guess  at  that.  I  was  never  there 
and  I  don't  know,  l3ut  that  undoubtedly  is  correct. 

Mr.  Halley.  During  what  years  did  they  operate  ? 

Mr.  Hart.  Well,  it  was  1947-48  season  and  1948-49,  I  believe. 

Mr.  Halley.  Did  they  operate  in  1949-50  at  Boca  Raton  ? 

Mr.  Hart.  Not  to  my  knowledge. 

Mr.  Halley.  Did  Mr.  O'Rourke  have  any  other  business  in  1947-48 
or  1949  that  you  know  of? 

Mr.  Hart.  Yes,  he  had  a  crap  game. 

Mr.  Halley.  Wliere? 

Mr.  Hart.  West  Palm  Beach. 

Mr.  Halley.  At  what  premises  was  it  operated  ? 

Mr.  Hart.  It  was  upstairs,  the  northwest  corner  of  Lamanna  Street 
and  Dixie  Highway. 

Mr.  Halley.  Was  it  connected  with  any  restaurant  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  Or  place  of  entertainment? 

Mr.  Hart.  No,  sir, 

Mr.  Halley.  Did  he  own  that  himself  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Did  he  have  any  business  at  the  Roney  Plaza  Hotel  ? 

Mr.  Hart.  Not  to  my  knowledge. 

Mr.  Halley.  Did  you  file  an  income  tax  report  for  the  Boca  Raton 
operation  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  Did  you  keep  the  books  on  that  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  Who  did? 

Mr.  Hart.  I  don't  know.  I  didn't  even  know  about  it  until  he — I 
didn't  know  he  operated  there  until  probably  December  1949,  during 
an  income-tax  investigation. 

Mr.  Halley.  Did  you  keep  the  books  on  the  crap  game  operations  ? 

Mr.  Hart.  No,  sir.  No  books  were  kept  on  those  operations.  It  is 
all  done  by  bank  operation,  and  his  tax  returns  are  prepared  from 
bank  deposits. 

Mr.  Halley.  You  mean  each  day's  receipts  are  deposited  in  the 
bank? 

Mr.  Hart.  No,  I  don't  think  that  is  correct.  In  the  operation  the 
cash  bankroll  consistently  runs  short.  They  deposit  checks  only. 
Very  seldom  is  there  an  excess  of  actual  cash  because  they  take  in 
checks.  They  deposit  the  checks  and  if  the  cash  bankroll  runs  short, 
they  write  a  check  to  cash  to  reimburse  bankroll. 

Mr.  Halley.  Do  you  know  in  what  bank  the  crap  game  deposited 
its  money  ? 

Ml'.  Hart.  It  all  went  in  the  same  bank  account. 

Mr.  Halley.  What  account  is  that? 

Mr.  Hart.  AVell,  in  recent  years  he  has  been  using  the  Atlantic  Na- 
tional Bank  in  West  Palm  Beach. 

Ml-.  Halley.  Does  he  also  use  that  to  bank  for  the  book  that  he 
keeps  there  ? 

Mr.  Hart.  Yes,  sir,  it  is  all  in  the  same  bank  account. 


ORGANIZED   CKIME    IN   INTERSTATE    COMMERCE  47 

Mr.  Halley.  Does  Mr.  O'liourke  have  any  other  businesses? 

The  CiiAiEMAN.  You  say  "in  recent  years."  How  about  in  past 
years  ? 

Mr.  Hart.  He  had  a  bank  account  at  the  Florida  Bank  &  Trust  Co. 
prior  to  this  and  he  has  had  a  bank  account  in  the  First  National  at 
Palm  Beach. 

Mr.  Halley.  The  Florida  Bank  &  Trust  Co.  in  West  Palm  Beach? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  Has  he  continued  those  three  accounts  or  have  they 
all  been  merged  into  the  one  at  the  Atlantic  National  Bank? 

Mr.  Hart.  Those  accounts  have  been  continued.  I  have  the  bank 
statements.  The  activities  have  been  through  the  Atlantic  National 
Bank  in  recent  years. 

Mr.  Halley.  Pursuant  to  the  subpena,  you  have  brought  the  state- 
ments and  canceled  checks  for  all  of  these  bank  accounts;  is  that 
correct  ? 

INlr.  Hart.  Yes,  sir. 

Mr.  Halley.  Do  you  know  of  any  other  business  that  Mr.  O'Rourke 
had  during  the  years,  say,  from  1946  to  date? 

Mr.  Hart.  No  other  business  activities.  He  had  a  few  little  invest- 
ments. 

JSIr.  Halley.  What  type  of  investments  2 

Mr.  Hart.  He  bought  a  mango  gi'ove;  a  grovelet.  I  think  it  is  a 
development  where  the  development  maintains  a  grove  for  some  years. 
The  checks  would  go  through  regular  in  payment  of  the  contract,  and 
he  had  an  investment  in  a  piece  of  property  in.  Riviera,  Fla. 

Mr.  Halley.  Is  that  in  Florida  ? 

Mr.  Hart.  Yes.    Riviera  Beach,  Fla. 

Mr.  Halley.  Does  he  have  any  other  property  or  real  estate? 

Mr.  Hart.  Not  that  I  know  of,  no,  sir. 

Mr.  Halley.  What  were  the  net  profits  for  the  crap  game  during 
the  year  1949  ? 

Mr.  Hart.  I  don't  notice  it.  It  is  all  in  one  account.  It  is  all  com- 
bined when  it  gets  to  me. 

Mr.  Halley.  Who  works  up  those  figures  and  gives  them  to  you  ? 

Mr.  Hart.  I  prepare  the  tax  returns  from  the  bank  statements. 

Mr.  Halley.  You  can't  tell  a  profit  in  a  crap  game  from  a  bank 
statement  alone,  can  you  ? 

Mr.  Hart,  I  can  tell  the  combined  profit  of  the  operations,  yes,  sir. 

Mr»  Halley.  You  make  no  effort  to  segregate  the  crap  game  from 
the  books  and  any  other  business  that  he  may  have  ? 

Mr.  Hart.  No,  sir.    It  is  all  in  one  bank  account. 

Mr.  Halley.  In  other  words,  your  tax  return  is  prepared  on  the 
assumption  that  all  moneys  received  and  all  disbursements  go  through 
the  bank  account  ? 

Mr.  Hart.  The  payroll  is  paid  in  cash.  It  doesn't  go  through  the 
bank  account. 

Mr.  Halley.  Is  it  your  testimony  that  all  cash  that  Mr.  O'Rourke 
received  in  any  way  except  that  which  is  disbursed  for  payroll  or 
other  leiritimate  expenses  goes  through  the  bank  account? 

Mr.  Hart.  He  takes  out  a  withdrawal  to  the  account  of  cash. 

Mr.  Halley.  Does  he  report  that  to  you  ? 

Mr.  Hart.  Yes,  sir. 


48  ORGANIZED   CRIME    IN   INTERSTATE    COMMERCaB 

Mr.  Halley.  What  is  that  drawmg  account? 

Mr.  Hart.  I  think  it  has  been  $50  a  week. 

Mr.  Halley.  And  you  deduct  that  or  rather  add  that  to  the  net 
income  ? 

Mr.  Hart.  I  add  that  to  his  income, 

Mr.  Halley.  Just  $2,500  a  year  in  cash  ? 

Mr.  Hart.  Yes. 

Mr.  Halley.  Is  there  any  other  cash  that  you  allow  for  ?  Cash  that 
is  withdrawn  ? 

Mr.  Hart.  There  are  other  adjustments.  He  may  make  a  loan  at 
the  bank,  borrow  some  money  or  pay  off  a  loan  or  may  borrow  some 
money  from  some  of  his  friends,  and  those  adjustments  I  have  to  make 
to  the  bank  statement  to  arrive 

Mr.  Halley.  Let's  confine  the  discussion  to  cash.  Is  it  your  testi- 
mony that  all  of  the  cash  which  he  receives  in  any  of  his  operations 
is  deposited  in  the  bank  account? 

Mr.  Hart.  That  is  the  plan  he  works  under.  I  don't  handle  the 
deposits,  but  I  have  no  reason  to  doubt  the  cash  is  deposited. 

Mr.  Halley.  The  only  cash  which  would  go  in  the  bank  account  is 
$2,500  a  year  which  he  draws,  and  cash  which  is  used  for  actual  busi- 
ness disbursements? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  But  you  have  no  check  on  that  at  all  ? 

Mr.  Hart.  I  have  no  check  on  it ;  no,  sir. 

Mr.  Halley.  You  just  accept  that  statement  from  him;  is  that 
right  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  What  was  the  net  profit  for  his  operations  in  1949  ? 
Would  you  refer  to  the  records  ? 

Mr.  Hart.  I  can't  tell  you  about  1949.  It  doesn't  amount  to  any- 
thing because  they  have  been  closed  and  I  haven't  filed  a  1949  return 
yet. 

Mr.  Halley.  What  do  j^ou  mean  when  you  say  that  they  have  been 
closed  ? 

Mr.  Hart.  They  have  not  been  open  for  operations.  The  State 
has  been  sewed  up. 

Mr.  Halley.  There  was  no  book  kept  in  1949  ? 

Mr.  Hart.  There  was  a  little  bit  of  booking  done  on  the  telephone 
and  so  on,  but  I  don't  think  it  pays  expenses. 

Mr.  Halley.  Is  it  your  testimony  that  Mr.  O'Kourke  was  not  op- 
erating for  the  year  1949? 

Mr.  Hart.  Well,  it  is  my  testimony  that  his  place  of  operations  has 
been  closed  the  majority  of  the  year.  I  think  they  operated — the}'- 
were  closed  January  7  or  8,  1949,  and  they  have  been  in  there  some 
with  the  doors  closed  and  about — did  a  little  telephone  business,  but  I 
don't  know  how  much. 

Senator  Hunt.  Why  were  they  closed  ? 

Mr.  Hart.  The  heat  was  on. 

Senator  Hunt.  Do  you  know  the  source  of  the  lieat  ? 

Mr.  Hart.  No;  I  couldn't  swear  that  I  do. 

Senator  Hunt.  Wliore  was  tliat  jilace  of  business? 

Hr.  Hart.  In  the  Grand  Hotel  or  on  Datura  Street,  in  the  Grand 
Hotel  building,  not  the  hotel  proper. 


ORGANIZED   CRIME    IN   INTERSTATE    COMIVIERCE  49 

Senator  Hunt.  How  many  rooms  did  he  occupy  ? 
Mr.  Hart.  Two. 

Senator  Hunt.  How  many  employees  did  he  have  ? 
Mr.  Hart.  That  would  vary  from  six  to  eight  or  nine. 
Senator  Hunt.  Could  you  give  us  the  names  of  the  employees? 
Mr.  Hart.  Yes,  sir. 

Senator  Hunt.  Are  they  in  your  records? 
Mr.  Hart.  Yes,  sir. 

Senator  Hunt.  How  many  telephone  outlets  did  he  have  ? 
Mr.  Hart.  I  don't  know  anything  about  that,  sir. 
Senator  Hunt.  Where  did  he  get  his  wire  service  ? 
Mr.  Hart.  Well,  there  was  a  leased  wire  that  came  in  there  to  West 
Palm  Beach  and  the  operator  distributed  the  service  to  all  the  books 
there. 

Senator  Hunt.  Would  your  records  show  by  canceled  checks  who 
and  the  amount  he  paid  for  this  service. 
Mr.  Hart.  I  think  so. 

Senator  Hunt.  Do  you  know  if  there  were  any  checks  made  pay- 
able to  the  Continental  Press? 

Mr.  Chappell.  I  was  talking  to  Mr.  O'Rourke  and  he  told  me  all 
of  his  checks  were  made  payable  to  cash;  that  he  was  requested  to 
make  them  that  way. 

Mr.  Halley.  What  service  did  he  use  ? 

Mr.  Chappell.  I  just  wanted  to  say  that  I  thought  it  might  be  of 
assistance  in  giving  him  a  thought. 

Mr.  Hart.  The  checks  are  payable  to  cash,  but  they  all  bear  the 
endorsement  "for  deposit." 

I  don't  recall  the  names  he  mentioned. 

Senator  Hunt.  These  various  telephone  outlets  that  he  had,  were 
they  all  in  his  name? 

Mr.  Hart.  I  don't  know  anything  about  that. 

Senator  Hunt.  Was  he  a  wholesaler  or  retailer  of  this  press  serv- 
ice; that  is,  did  he  receive  his  wire  information  and  then  retail  it 
cut,  or  did  he  use  it  for  his  own  purposes  and  sell  it  directly  to  the 
bettor? 

Mr.  Hart.  Sell  it. 

Senator  Hunt.  If  you  were  placing  a  bet  with  him,  the  only  wire 
service  he  would  utilize — he  would  utilize  that  wire  service  for  his 
own  information.     He  wouldn't  sell  that  wire  service  to  you  that 
you  might  go  out  and  retail  it  again  ? 
Mr.  Hart.  No. 

Senator  Hunt.  He  was  not  in  the  nature  of  a  wholesaler  of  book 
or  wire  information? 

Mr.  Hart.  No  ;  I  wouldn't  think  so. 

Mr.  Halley.  What  is  the  last  year  in  which  the  book  did  operate  ? 
Mr.  Hart.  1948. 

Mr.  Halley.  What  was  the  net  profit? 
Mr.  Hart.  I  will  have  to  look  at  the  record. 
Mr.  Halley.  Would  you  look  it  up  ? 

Mr.  Hart.  That  was  a  very  poor  year.  He  shows  a  net  profit  of 
$1,702.45.  ^ 

Mr.  Halley.  $17,000? 
Mr.  Hart.  No,  sir;  $1,700. 


50  ORGANIZED   CRIME    IN   INTERSTAT'E    COMMERCE 

Mr.  Hallet.  What  operations  are  shown  in  that  return  ? 

Mr.  Hart.  Handbook. 

Mr.  Halley.  What  was  the  net  on  the  handbook? 

Mr.  Hart.  The  figure  I  just  gave  you — $1,702.45. 

Mr.  Hallet.  Is  that  the  total  net  income  reported  by  him? 

Mr.  Hart.  No,  sir.    He  had  interest,  $379.75. 

Mr.  Halley.  How  about  the  operation  at  Boca  Eaton  ? 

Mr.  Hart.  It  is  in  these  figures. 

Mr.  Halley.  In  those  figures  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Wliere  is  it?  Where  are  your  work  sheets  showing 
how  you  arrived  at  it  ?    You  have  all  the  papers  here,  do  you  not  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Let  us  have  the  work  sheets  showing  how  you  got  the 
$1,702.45  figure ;  do  you  have  that  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Let's  review  them.  What  operations  are  shown  in  the 
work  sheets? 

The  Chairman.  Let's  get  this  clear.    This  is  for  what  year  ? 

Mr.  Hart.  1948. 

The  Chairman.  Is  that  the  calendar  year  1948  ? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  All  right.  What  is  the  date  of  the  return  you  have 
just  referred  to  ? 

Mr.  Hart.  1948  calendar  year. 

Mr.  Halley.  Is  it  dated  March — where  is  the  copy  of  the  return  ? 

The  Chairman.  This  return  is  undated,  but  this  is  an  individual 
income-tax  return  for  the  year  1948.  It  would  have  been  sent  in  early 
some  time  in  1949 ;  is  that  right? 

Mr.  Hart.  I  think  I  had  an  extension  on  it.  It  probably  was  sent 
in  60  days  after  March  15. 

The  Chairman.  Yes,  sir.    All  right.    Go  ahead. 

Mr.  Halley.  Turning  to  your  work  sheets,  would  you  explain  the 
figures  and  show  first  the  source  of  income  for  1948  ? 

Mr.  Hart.  I  arrived  at  the  income  by  taking  the  bank  deposits  and 
eliminating  items  which  are  not  income. 

Mr.  Halley.  You  are  now  talking  about  gross  income  for  1948  be- 
fore expenses  ? 

Mr.  Hart.  That  is  right. 

Mr.  Halley.  What  is  the  gross  income  for  1948  ?  That  is,  as  shown 
by  the  work  papers  ? 

Mr.  Hart.  $489,139.42. 

Mr.  Halley.  That  is  actual  income  gross  ? 

IVIr.  Hart.  That  is  the  gross  receipts  from  the  business. 

Mr.  Halley.  And  it  is  your  contention  from  a  business  grossing 
four-hujidred-and-eighty-nine-thousand-odd  dollars  there  was  a  net 
profit  of  $1,702.45 ;  is  that  right? 

Mr.  Hart.  During  the  course  of  income-tax  examination,  I  would 
admit  there  is  probaJilv  an  error  of  about  $1,000  in  that. 

Mr.  Halley.  About  $1,000? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  What  are  the  sources  of  income  ? 

Mr.  Hart.  What  are  the  sources  of  income  ? 


ORGAlSriZED   CRIME    IN   mTERSTATE    COMMERCE  51 

Mr.  Halley.  Yes.  How  much  did  the  handbook  make  and  how 
much  did  the  operation  at  Boca  Raton  make? 

Mr.  Hart.  I  have  no  separation  on  tliis.  I  don't  think  there  was 
a  crap  game.  I  don't  know  whether  there  was  in  194:8  or  not.  I  woukl 
like  to  look  at  tlie  records. 

That  was  ck)sed  before  the  books  was.  I  have  no  segregation  of 
the  different  businesses.     They  all  went  through  one  bank  account. 

Mr.  Halley.  Did  the  Boca  Raton  business  have  its  own  separate 
bank  account  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  You  testified  that  you  didn't  even  know  until  1949 
that  there  was  a  Boca  Raton  business.  If  it  all  went  through  a  bank 
account  and  you  knew  about  it  when  you  prepared  the  1948  income 
tax,  it  seems  to  me  you  would  have  known  there  was  a  Boca  Raton 
business  before  December  1949. 

Mr.  Hart.  I  am  telling  you  now  that  I  didn't  know  until  December 
1949.  I  knew  there  was  a  Boca  Raton  business  but  I  didn't  know 
Frank  Erickson  had  anything  to  do  with  it.  I  knew  Mr.  O'Rourke 
operated  there  and  that  funds  went  through  the  bank. 

Mr.  Halley.  Are  you  now  changing  your  testimony  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  I  recall  very  definitely  your  testifying  that  you  didn't 
know  there  was  such  a  thing  as  an  operation  at  Boca  Raton. 

Mr.  Hart.  I  said  I  did  not  know  there  was  any  such  thing  as  a 
partnership  at  Boca  Raton. 

Mr.  Halley.  Will  the  stenographer  please  go  back  and  read  back 
that  portion  of  the  witness'  testimony  concerning  what  we  have  been 
talking  about? 

(The  record  was  read  by  the  reporter.) 

Mr.  HxVlley.  May  the  record  show  that  the  earlier  portion  of  the 
witness'  testimony  has  been  read  to  him. 

Do  you  have  any  comment  now  with  reference  to  whether  or  not 
you  want  to  change  your  earlier  testimony,  because  it  is  quite  apparent 
that  your  earlier  testimony  was  that  you  didn't  know  there  was  such 
a  thing  as  an  operation  at  Boca  Raton  by  Mr.  O'Rourke. 

The  Chairman.  Until  December  194:9. 

Mr.  Hart.  My  testimony,  whatever  it  is,  should  have  been  that  I 
did  not  know  of  the  operation  by  a  partnership  in  Boca  Raton.  I 
knew  of  Mr.  O'Rourke 's  operation,  but  I  believed  that  it  was  a  pro- 
prietorship operation  and  had  no  knowledge  of  Erickson's  connec- 
tion with  it. 

Mr.  Halley.  You  have  testified  previously  that  you  didn't  file  an 
income-tax  return  for  the  Boca  Raton  operation  because  you  didn't 
know  about  it. 

Mr.  Hart.  I  don't  think  I  testified  to  that. 

Mr.  Halley.  Mr.  Hart,  did  you  file  the  income-tax  report  for  the 
Boca  Raton  operation? 

Mr.  Hart.  It  was  a  partnership  return,  which  I  did  not  file. 

Mr.  Halley.  Do  you  have  a  copy  of  the  partnership  return  ? 

Mr.  Hart.  I  think  I  do ;  yes,  sir. 

Mr.  Halley.  Will  you  produce  it? 

Mr.  Hart  (searching  through  documents).  I  don't  have  it. 

Mr.  Halley.  The  subpena  that  was  served  upon  you  called  for  all 
the  papers  relating  to  O'Rourke  and  Erickson.  That  was  clearly 
within  the  terms  of  the  subj)ena,  was  it  not? 


52  ORGANIZED    CRIME    IN   m'TERSTAT'E    COMMERCE 

Mr.  Hart.  It  is  not  there. 
Mr.  Halley.  Do  you  know  where  it  is  ? 

Mr.  Hart.  No  ;  I  can't  say  that  I  do.    I  thought  I  had  it  with  me. 
Mr.  Halley.  Do  you  have  some  additional  records  in  your  office? 
Mr.  Hart.  It  might  be  in  my  office. 

Mr.  Halley.  Do  you  have  correspondence  in  your  office? 
Mr.  Hart.  Regarding  these  matters? 
Mr.  Halley.  Yes. 
Mr.  Hart.  No,  sir. 

Mr.  Halley.  Where  is  the  correspondence  regarding  these  matters, 
and  by  "these  matters"  I  am  referring  to  Mr.  O'Rourke's  transactions. 
Mr.  Hart.  I  would  have  no  occasion  to  have  any  correspondence 
with  him. 

Mr.  Halley.  I  note  there  is  some  correspondence  with  the  Bureau  of 

Internal  Revenue  in  these  files  that  you  have  been  thumbing  through. 

Mr.  Hart.  Yes ;  there  is  some  with  the  Bureau  of  Internal  Revenue. 

Mr.  Halley.  When  you  receive  a  copy  of  a  tax  return  from  another 

a  ccountant,  there  is  at  least  a  transmittal  letter,  isn't  there  ? 

Mr.  Hart.  Well,  I  don't  have  any — there  were  no  transmittals  with 
these  returns.    They  were  delivered  to  me  by  Mr.  O'Rourke. 

Mr.  Halley.  I  don't  believe  that,  and  I  believe  you  do  know  who 
prepared  the  return.  I  believe  that  you  are  just  evading  the  questions 
of  the  committee  and  are  attempting  to  give  the  committee  as  little 
information  as  possible. 

Mr.  Hart.  That  is  your  privilege. 
Mr.  Halley.  That  is  a  fact. 

The  Chairman.  Mr.  Hart,  let  me  ask  you  a  question.    When  did 
you  get  this  partnership  return  for  1948  of  Erickson  and  O'Rourke  ? 
Mr.  Hart.  During  an  income-tax  examination  on  Mr.  O'Rourke's 
1948  return. 

A  revenue  agent  came  in  and  a  man  named  Price  and  asked  some 
questions  and  asked  if  I  had  a  copy  of  the  partnership  return  for 
Boca  Raton  and  I  told  him  I  didn't  know  there  was  any  partnership 
down  there,  and  he  said  "Yes,"  there  was,  and  he  gave  me  what  in- 
formation he  had  about  it  and  I  call  Mr.  O'Rourke  and  asked  him 
about  it  and  he  said  "Yes,"  he  thought  Erickson  filed  a  partnership 
return,  and  I  said  I  would  like  to  see  it,  and  I  asked  him  to  bring  it 
down  to  me  and  he  looked  it  up  and  brouiiht  it  to  me. 

The  Chairman.  What  do  you  think  you  have  done  with  it? 
Mr.  Hart.  I  don't  know.    I  thought  I  had  it  in  the  file  with  me. 
Mr.  Halley.  I  don't  know  how  you  could  prepare  the  1948  tax  re- 
turn without  the  partnership  return  before  you  if  you  were  reflecting 
the  income  from  Boca  Raton  in  this  tax  retnrn  for  1948. 
Mr.  Hart.  The  income  is  in  these  deposits. 

Mr.  Hali^ey.  How  do  you  know?     You  are  a  certified  accountant'^ 
Mr.  Hart.  Yes. 

Mr.  Halley.  And  you  are  a  lawyer? 
Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  How  do  you  know  the  income  is  in  those  deposits? 
Mr.  Hart.  That  is  already  in  the  record;  that  I  don't  know.  I 
have  been  told  here  that  I  am  not  bound  by  the  strict  rules  of  evidence 
in  this  testimony ;  that  I  can  give  you  what:  I  do  know  and  what  I  think 
about  it.  If  you  want  to  pin  me  down  to  Avhat  I  can  actually  swear 
to,  I  don't  know  anything  about  these  operations. 


ORGANIZED   CRIME    IN   INTE'RSTAT'E    COMMERCE  53 

Mr.  Halley.  How  can  you  prepare  this  tax  return  witliout  know- 
ing it  and  have  it  on  the  return  ? 

Mr.  Hart.  I  prepared  the  tax  return  from  the  information  as  fur- 
nished and  as  stated. 

Mr.  Halley.  And  that  information  as  stated  was  simply  all  the 
income  that  went  into  a  bank  account  ? 

Mv.  Hart.  Yes,  sir. 

Mr.  Halley.  Without  any  break-down? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  You  are  agreeing  with  me  that  there  was  no  break- 
down at  all  showing  where  the  income  came  from? 

Mr.  Hart.  I  don't  know  what  business  it  came  from.  There  is  no 
segregation  between  the  different  businesses. 

Mr.  Halley.  You  don't  even  know  that  certain  businesses  were  in 
existence,  did  you  ? 

Mr.  Hart.  I  knew  the  business  was  in  existence,  but  I  didn't  know  a 
partnership  was  in  existence. 

Mr.  Halley.  You  testified  that  you  didn't  know  until  the  end  of 
1949  that  there  was  any  business  at  all.  I  presume  that  you  are 
changing  that  testimony  and  you  are  now  saying  that  you  did  know 
there  was  a  Boca  Raton  business. 

Mr.  Hart.  I  definitely  didn't  know  and  I  don't  think  I  testified  I 
didn't — I  was  testifying  about  the  partnership  return  and  at  the 
time  I  stated  I  didn't  know  that  existed. 

Mr.  Halley.  That  record  will  stand  as  it  reads.  What  I  want  to 
know  now  is  if  you  did  know  there  was  a  Boca  Raton  business  and  a 
separate  partnership,  how  could  you  accept  these  figures  and  not 
have  asked,  at  the  time  you  prepared  this  report,  for  a  partnership 
return  for  Boca  Raton,  or  a  statement  from  the  auditor  for  the  part- 
nership? How  could  a  lawyer  or  an  auditor  prepare  an  income-tax 
return  without  getting  a  statement  from  the  auditor  who  prepared 
the  partnership  return  ? 

INIr.  Hart.  When  I  prepared  this  return,  I  didn't  know  there  was  a 
partnership. 

Mr.  Halley.  You  knew  there  was  a  business? 

Mr.  Hart.  Yes. 

Mr.  Halley.  Where  were  the  figures  for  the  business  ? 

Mr.  Hart.  In  this  bank  account. 

Mr.  Halley.  Did  you  think  that  the  book  at  Boca  Raton  grossed  so 
little  that  it  wouldn't  show  up  larger  than  the  figures  you  have  in 
your  gross-income  figures  for  1948? 

Mr.  Hart.  I  have  not  any  reason  whatever  to  doubt  the  fact  that 
the  money  was  being  deposited  in  this  account. 

Mr.  Halley.  Do  you  have  the  work  sheets  for  the  previous  years  ? 

The  Chairman.  Just  a  minute  on  that. 

Mr.  Halley.  I  want  to  compare  them,  sir.  I  want  to  show  the 
size.     Let's  say  we  have  1947  and  1946. 

Mr.  Hart.  1  have  1947. 

Mr.  Halley.  Do  you  have  1946  ? 

Mr.  Hart.  Yes. 

Mr.  Halley.  When  did  the  Boca  Raton  operations  start  ? 

Mr.  Hart.  They  operated  two  seasons.  I  thought  I  had  those 
returns. 


54  ORGANIZED   CROME    IN   INTERSTATE    COMMERCE 

Mr.  Halley.  Wasn't  it  the  season  of  1947-48  and  the  season  1948- 
49? 

Mr.  Hart.  That  is  what  I  think  it  was ;  yes,  sir. 

Mr.  Halley.  So  that  the  first  year  in  which  any  income  from  Boca 
Raton  wonld  be  reflected  would  be  the  winter  season  starting  around 
January  1948  because  the  winter  1947-48  would  show  no  real  opera- 
tions before  the  season  opened  in  January  at  a  place  like  Boca  Raton; 
isn't  that  so  ? 

Mr.  Hart.  No  ;  I  don't  think  it  is.  I  think  they  opened  earlier  than 
that. 

Mr.  Halley.  Then  there  may  have  been  some  income  in  1947  from 
Boca  Raton? 

Mr.  Hart.  I  think  so. 

Mr.  Hatxey.  There  would  be  a  great  deal  of  income  starting  Janu- 
ary 1948  into  1948  from  Boca  Raton;  isn't  that  right? 

Mr.  Hart.  I  don't  know  what  you  mean  by  income.  There  would 
be  a 

Mr.  Halley.  I  am  talking  about  gross  income.  There  would  be  a 
greater  volume  of  receipts.     Gross  receipts? 

Mr.  Hart.  Yes. 

Mr.  Hali,ey.  If  you  are  dealing  with  an  individual  business  and 
not  a  partnership,  then  in  your  work  sheets  showing  gross  income, 
you  would  have  the  gross  income  from  the  whole  book  operation  at 
Boca  Raton  and  not  merely  the  net  profit. 

Mr.  Hart.  That  is  what  I  am  testifying  that  I  believe  I  do  have,  sir. 
I  have  no  reason  to  question  it. 

Mr.  Halley.  Yet,  if  you  take  your  gross  receipts  for  1948 — what 
are  they? 

Mr.  Hart.  Gross  receipts  from  business  were  $489,179.42. 

Mr.  Halley.  And  for  1947? 

Mr.  Hart.  $453,917.14. 

Mr.  Haixey.  And  for  1946? 

Mr.  Hart.  $410,949.43. 

Mr.  Halley.  Where  are  your  work  sheets  showing  tlie  specific 
expenses  at  the  Boca  Raton  Hotel  ? 

Mr.  Hart.  I  wouldn't  have  that  except  on  those  copies  of  tax  returns 
that  I  was  furnished. 

Mr.  Halley.  How  did  you  file  your  1948  income-tax  return 
yourself? 

Mr.  Hart.  I  have  that  right  here. 

Mr.  Halley.  You  have  ]3reviously  testified  that  you  didn't  keep  any 
of  the  books  for  the  Boca  Raton  ? 

Mr.  Hart.  That  is  correct. 

Mr.  Halley.  Then  how  could  you  reflect  the  Boca  Raton  income  in 
this  1948  income-tax  return? 

Mr.  Hart.  I  have  answered  that  question  three  times. 

Mr.  Halley.  I  would  like  to  have  you  answer  it  again,  please. 

Mr.  Hart.  I  am  of  tlie  opinion,  and  I  have  been  told,  that  the 
receipts  from  the  Boca  Raton  Club  are  in  these  gross  receipts  in  this 
bank  account. 

Mr.  Halley.  That  would  be  gross  receipts  from  the  Boca  Raton 
Club? 

Mr.  Hart.  No,  sir.  I  didn't  say  that.  I  said  that  the  gross  receipts 
from  the  Boca  Raton  Club  are  in  these  items. 


ORCANIZED   CRIME    EST   ESPTERSTATE    COMMERCE  55 

Mr.  Haixey.  The  fjross  receipts  from  the  Boca  Raton  Chib  would 
be  in  the  gross  items  that  you  have  reported  here ;  is  that  right? 

Mr.  Hart.  That  is  my  honest  opinion. 

Mr.  Hai.lf.y.  They  woukl  all  liave  been  deposited  in  the  Atlantic 
National  Bank  because  that  is  where  all  these  items  come  from? 

Mr.  Hart.  Yes,  sir,     I  believe  that  to  be  true. 

Mr.  Hali.ey.  Do  you  want  this  committee  to  believe  that  you 
thought  that  during  the  years  that  Mr.  O'Rourke  was  operating  at 
Boca  Raton  his  gross  income  didn't  go  up  at  all;  that  the  gross 
amount  of  bets  that  he  handled  didn't  ,go  up?  If  you  compare  your 
gross  income  for  1948  with  the  gross  income  foi-  1047  and  for  194G, 
jou  will  see  that  it  is  substantially  the  same,  and  I  ask  you  if  you 
don't  know  that  the  gross  income  from  Boca  Raton  in  1949  was  sub- 
stantially, alone,  in  excess  of  $750,000? 

Mr.  Hart.  No  ;  I  don't  know  that. 

Mr.  Halle Y.  If  that  is  the  fact,  is  it  even  possible  that  you  could 
have  reflected  gross  receipts  from  Boca  Raton  in  this  figure  of  1948 
showing  total  bank  deposits  of  about  $552,000? 

]Mr.  Hart.  It  would  have  been  possible  to  have  had  $750,000  receipts 
and  $552,000  deposits. 

Mr.  Halley.  The  whole  theory  of  your  tax  returns  falls  if  I  am 
right. 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  You  have  testified  that  the  bank  deposits  showed  all 
of  Mr.  O'Rourke's  income.  That  is  the  theory  on  which  you  j)repared 
the  tax  return  ? 

Mr.  Hart.  That  is  correct. 

Mr.  Halley.  And  that  your  tax  returns  reflect  Boca  Raton  for  1948. 
It  is  a  sheer  impossibility  isn't  it  ? 

Mr.  Hart.  Not  that  I  know  of,  sir. 

Mr.  Halley.  How  do  you  find  $750,000  in  $552,000  ? 

Mr.  Hart.  I  am  not  trying  to  find  it.    You  are  the  one  who  found  it. 

Mr,  Halley.  You  are  stuck  with  it,  and  what  I  would  like  to  have 
you  reconcile  is  that  that  is  an  honest  tax  return  with  the  statement  I 
have  made,  and  you  have  to  accept  my  statement  that  the  gross  receipts 
for  Boca  Raton  in  1948  were  in  excess  of  $750,000. 

Mr.  Hart.  I  have  testified  regarding  the  figures  I  have  here,  and 
I  have  told  you  what  they  are  and  what  in  my  opinion  they  are  made 
up  of. 

Mr.  Halley.  Do  vou  contest  my  statement  that  the  gross  receipts 
for  Boca  Raton  in  1948  were  $750,000  ? 

Mr.  Hart.  I  am  saying  that  I  clon't  know  anything  about  that. 

Mr.  Halley.  You  should  know  something  about  it. 

Mr,  Hart,  All  I  know  is  what  you  have  told  me, 

Mr.  Halley.  That  is  not  right.  That  is  not  right  at  all.  You 
have  seen  the  partnership  returns  for  Boca  Raton.  You  have  told  me 
that.    That  is  your  testimony. 

Mr.  H-:U?T.  That  is  right.    I  have  seen  the  partnership  return. 

Mr.  Halley.  But  somehow  or  other,  you  forgot  to  biing  it  down 
here.    Do  you  know  why  ? 

Mr.  Hart.  I  can  only  say  in  that  respect  that  it  was  not  intentional. 
I  thought  I  had  it  with  me,  and  I  don't  know  why  I  don't  have  it. 

Mr.  Halley.  If  you  have  seen  it  and  discussed  it  in  connection  with 
an  inquiry  of  the  Bureau  of  Internal  Revenue,  you  must  have  in  mind 

68958— 50— pt.  1 5 


56  ORG'AXIZED    CRIME    IN   INTERSTATE    COMMERCE 

the  size  of  the  operation  at  Boca  Raton.  It  must  have  been  very 
forcibly  brought  to  your  attention  in  your  discussions  with  the  Bureau 
of  Internal  Revenue. 

Mr.  Hart.  No,  sir. 

Mr.  Hallet.  Isn't  it  a  fact  that  you  have  already  offered  to  pay 
the  Bureau  of  Internal  Revenue  a  very  substantial  sum  in  settlement 
of  a  claim  for  additional  tax  for  Mr.  O'Rourke  ? 

Mr.  Hart.  Suppose  you  say  Avhether  it  is  a  fact  or  not. 

Mr.  Halley.  Suppose  you  do.  Suppose  you  testify  by  answering 
questions. 

Mr,  Hart.  It  is  not  a  fact 

]\Ir,  Halley.  You  have  never  offered  to  pay  a  substantial  sum  to  the 
Bureau  ? 

JNIr.  Hart.  No  sum  of  any  kind,  substantial  or  unsubstantial. 

Mr.  Halley.  You  have  been  discussing  the  payment  of  additional 
sums,  have  you  not  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  Have  you  had  any  discussions  with  the  Bureau  ? 

Mr.  Hart.  They  examined  Mr.  O'Rourke's  return;  the  usual  dis- 
cussions. 

Mr.  Halley.  Have  they  asked  for  an  additional  payment  ? 

ISIr.  Hart.  Yes,  sir, 

Mr.  Halley.  Have  you  flatly  refused  to  make  any  additional 
payment? 

;^Ir.  Hart.  They  have  not  asked  for  an  additional  payment.  They 
have  proposed  an  additional  assessment  which  in  the  ordinary  course 
of  business  would  not  be  payable  until  assessed, 

Mr.  Halley.  Has  any  discussion  taken  place  in  compromise  of  that 
proposal  ? 

JSfr.  Hart.  Not  to  my  knowledge;  no  discussions  with  me  were  had 
in  connection  with  any  compromises,  and  I  have  never  heard  of  it. 

Mr.  Halley.  In  looking  at  that  partnership  tax  return  which  you 
received  and  which  you  asked  for,  is  that  your  testimony — that  you 
asked  for  it  after  a  dispute  arose  with  the  Bureau  of  Internal  Revenue? 

Mr.  Hart.  That  is  right. 

Mr.  Halley.  Then  you  asked  Mr.  O'Rourke  to  get  that  for  you? 

]Mr.  Hart.  I  asked  him  if  there  was  a  partnership  return  and  he 
said  he  tliought  maybe  there  was  that  Erickson  had  entered,  and  if 
he  could  find  it  he  would  bring  it  in. 

Mv.  Halley.  And  he  brought  it  ? 

INIr.  Hart.  Yes,  sir, 

Mr.  Halley.  And  when  you  got  it,  did  you  look  at  it  ? 

Mr.  Hart.  Yes. 

Mr.  Halley.  Did  you  notice  that  the  gross  income  was  far  in  excess 
of  the  total  gross  income  that  you  stated  in  your  own  return  for  all 
operations? 

Mr,  Hart,  Well,  I  wouldn't  say  that  I  did,  I  think  perhaps  you 
are  confusing  gross  receipts  and  deposits,  which  are  not  the  same 
by  any  means.  That  return,  I  think,  showed  gross  receipts.  These 
figures  that  I  am  testifying  here  from  my  work  papers  are  not  neces- 
sarily the  gross  turn-over  or  the  gross  receipts.  They  are  the  gross 
deposits. 

Mr.  Haeley.  What  is  the  difference  between  gross  receipts  and  gross 
deposits  ? 


ORGANIZED  CR!IME    IN   INTERSTATE    COMMERCE  57 

Mr.  Hart.  You  might  book  $6,000  worth  of  bets  and  only  win  $1,000. 
The  $1,000  woukl  be  deposited.  Tlie  $5,000  you  would  pay  back  out. 
I  tliink  that  is  where  the  difference  is  between  the  size  of  these  figures. 

Ml'.  Halley.  If  anything,  your  receipts  would  be  even  greater  tlian 
your  bank  deposits  and  your  work  sheets  should  show  the  receipts. 

Mr.  Hart.  I  don't  know  whether  they  should  or  not. 

Mr.  Halley.  Are  you  an  accountant  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  Don't  you  think  the  work  sheets  should  show  the  gross 
receipts  of  a  business^ 

JNlr.  Hart.  I  think  the  work  sheets  I  have  here  are  correct. 

Mr.  Halley.  You  say  they  are  correct,  but  you  don't  really  think 
they  are  correct. 

j\Ir.  Hart.  I  think  they  are  correct. 

JMr,  Halley.  How  do  you  reconcile  that  with  the  gross  receipts 
of  the  Boca  Raton  operation? 

Mr.  Hart.  The  gross  receipts  of  the  Boca  Raton  operation  are 
undoubtedly  set  up  on  a  win  and  lose  basis.  The  gross  receipts  as  I 
show  them  are  really  gross  receipts  less  losses. 

Mr.  Halley.  Let's  go  over  that.  Let's  take  your  statement  for 
1948.    Here  are  your  gross  receipts  there,  $489,109.42  ? 

Mr.  Hart.  Yes,  sir. 

Mr.  Halley.  What  are  they  ? 

JMr.  Hart.  That  is  the 

jNlr.  Halley.  Are  they  wins  less  losses?  I  think  that  is  what  you 
just  said. 

Mr.  Hart.  That  is  the  bank  clearances;  that  is  what  it  is.  You 
don't  deposit  your  losses.  You  may  have  a  $3,000  bank  roll,  do 
$27,000  worth  of  business  and  you  may  break  even. 

]\Ir.  Halley.  Do  I  understand 

Mr.  Hart.  That  is  not  from  the  gross  amount  of  money  taken. 

Mr.  Halley.  Do  I  properly  understand  that  the  $489,000  repre- 
sents the  amount  of  money  O'Rourke  won  in  1948  ? 

Mr.  Hart.  No,  sir. 

Mr.  Halley.  You  said  it  was  wins  less  losses.  Is  that  his  net  win- 
nings for  1948— $489,000? 

Mr.  Hart.  No,  sir. 

Mv.  Halley.  What  is  it? 

Mr.  Hart.  It  is  his  bank  deposits. 

ISlr.  Halley.  That  is  no  answer.  You  said  it  represented  wins 
less  losses. 

Mr.  Hart.  Each  day's  deposits — they  deposit  the  checks  they  take 
in.  They  may  do  $10,000  worth  of  business  and  wind  up  with  $4,000 
wortli  of  checks  and  only  make  $500  for  that  matter. 

The  Chairman.  What  is  that  bank  roll  listed  here  ? 

Mv.  Hart.  That  is  tlie  bank  roll,  things  written  in  to  reimburse  the 
bank  roll  in  this  business.    The  cash  l)ank  roll  consistently  runs  short. 

Tlie  Chairman.  What  is  the  pay  off? 

]\Ir.  Hart.  That  is  the  payment  of  bets,  or  lay-off.  Lay-off  may  be 
there  also. 

Tlie  Chairman.  Then  as  I  understand  it,  you  also  have  the  amounts 
paid  off  either  to  lay  off  or  payment  of  bets? 

Mr.  Hart.  By  check.    These  are  all  checks :  no  cash  transactions. 


58  ORG'AXIZED    CREVIE    EST   IN'TERSTATE    COMMERCE 

The  Chairman.  Wliere  did  you  reflect  the  amount  of  the  bank  roll 
that  finally  came  in  the  fixing  up  of  this  1948  income  ? 

Mr.  Hart.  That  is  the  bank  roll  which  was  kept  at  Boca  Eaton  ? 

Mr.  Chappell.  Senator,  will  you  let  me  say  something  that  might 
clarify  the  situation  ? 

The  Chairman.  All  right,  Mr.  Chappell. 

Mr.  Chappell.  As  I  understand  it,  O'Rourke  was  really  an  agent  for 
Erickson  in  the  Boca  Katon  operation.  That  is  the  way  I  understand 
it. 

The  Chairman.  Agent  for  whom  ? 

Mr.  Chappell.  Erickson. 

Mr.  Halley.  Do  you  mind  my  interrupting?  I  think  that  if  you 
wanti:o  testify  to  that,  we  will  accept  your  testimony,  but  I  must 
advise  you  not  to  testify  to  it  until  you  know  the  facts. 

Mr.  Chappell.  I  thought  it  would  clarify  it. 

Mr.  Hallet.  It  doesn't  clarify  it.  It  contradicts  the  Imown  facts. 
If  you  want  to  testify  to  that  so  that  the  record  will  show  that  that 
is  your  version  of  the  facts,  we  will  accept  the  testimony. 

Mr.  Chappell.  I  think  you  know  as  well  as  I  do  that  I  couldn't 
testify  to  it. 

Mr.  Hallet.  I  think  you  were  confusing  the  facts  because  the  facts 
are  not  as  you  say. 

I  am  sorry,  Mr.  Chairman.  I  have  no  further  questions  on  this  line, 
unless  the  committee  would  like  to  proceed  further. 

The  Chairman.  I  wanted  to  get  from  Mr.  Hart  again  the  sources 
of  Mr.  O'Rourke's  income. 

Mr,  O'Rourke  had  an  interest  in  his  partnership  in  Boca  Raton  dur- 
ing the  time  that  you  have  stated ;  is  that  correct  ? 

Mr.  Hart.  I  am  told  that  that  is  correct ;  yes,  sir. 

The  Chairman.  And  he  also  had  his  own  crap  game  in  West  Palm 
Beach? 

Mr.  Hart.  He  has  had. 

The  Chairman.  Anyway,  during  the  same  time  or  at  some  time  he 
had  the  operation  at  Boca  Raton,  he  had  a  crap  game  in  West  Palm 
Beach? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  And  then  he  had  an  orchard  or  a  grove  ? 

Mr.  Hart.  That  is  one  of  his  investments.  I  think  it  is  nonpro- 
ductive yet. 

The  Chairman.  And  he  also  had  a  furniture  and  fixtures  business  ? 

Mr.  Hart.  No,  sir.  I  think  you  are  looking  at  the  depreciation 
schedule  on  his  tax  return.  I  took  depreciation  on  the  furniture  and 
fixtures  in  his  place  of  business. 

The  Chairman.  Those  are  the  only  businesses  that  you  know  of? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  That  you  have  recited  ? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  How  about  that  partnership  return?  You  have 
got  it  somewhere. 

Mr.  Hart.  I  am  sure  I  do  have  it ;  yes,  sir. 

The  Chairman.  How  are  we  going  to  get  an  opportunity  to  see  it? 

Mr.  Hart.  Well,  I  don't  understand  why  I  don't  have  it  with  me. 
How  would  you  like  to  have  it  ?  Shall  I  make  you  a  copy  of  it  ?  Any- 
thing you  say. 


iORGA]NnZED    CRIME    IN   INTERSTATE    COMJSIERCE  59 

Mr.  Halley.  I  think  probably  you  ought  to  get  it  down  here  just 
as  fast  as  you  can— the  return  itself.    It  will  have  to  go  into  evidence. 

Mr.  Hart.  I  will  be  glad  to  do  that.  I  don't  know  why  it  is  not 
here. 

The  Chaxrmaist.  Mr.  Rice  will  be  here,  and  we  will  make  some 
arrangement  for  Mr.  Hart  to  give  it  to  him. 

Mr.  Halley.  Give  it  to  Mr.  Rice  at  the  hotel  this  evening  or  dur- 
ing the  later  afternoon  if  you  can  get  it  back  here  by  3  or  4  o'clock, 
The  committee  will  be  in  the  courthouse  here. 

Mr.  Hart.  I  don't  see  how  I  can  get  it  back  here  by  that  time.  I 
have  to  go  up  to  get  it. 

Mr.  Halley.  In  the  later  part  of  this  afternoon  you  can  deliver  it 
to  Mr.  Rice  who  is  at  the  McAllister  Hotel. 

Senator  Hunt.  Do  you  have  anyone  in  your  office  whom  you  can 
ask  to  pick  it  out  and  send  it  on  down  ? 

Mr.  Hart.  I  wouldn't  know  where  to  have  them  look  for  it  because 
it  should  have  been  in  the  file.  It  is  probably  on  my  desk.  It  will 
take  time  to  go  through  the  file. 

The  Chairman.  If  you  can't  find  Mr.  Rice,  Mr.  Brown,  would  you 
be  the  custodian  for  it  % 

Mr.  Brown.  I  would  be  glad  to. 

Mr.  Halley.  Also  this  file  stripped  down  bare  of  all  memoranda, 
correspondence — anything  but  official  papers  that  you  are  required  to 
keep. 

Mr.  Hart.  I  don't  have  any  correspondence  for  that  man.  I  just 
simply  do  his  tax  work.  I  have  a  little  correspondence  with  the 
Treasury  Department  and  that  is  about  all. 

The  Chairman.  Mr.  Hart,  did  Mr.  O'Rourke  sign  these  tax  re- 
turns himself? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  You  didn't  sign  tliem  as  the  person  having  pre- 
pared the  return  for  him  ? 

Mr.  Hart.  I  guess  so. 

The  Chairman.  How  about  the  partnership  return?  Does  it  have 
the  person  who  prepared  it  on  it  % 

Mr.  Hart.  I  don't  know,  but  I  think  so.    I  think  it  does. 

The  CiL\iR3iAN.  Mr.  Hart,  just  in  the  ordinary  run  of  things,  if 
somebody  brought  a  tax  return  that  was  in  controversy,  or  a  copy 
of  one,  being  a  lawyer  and  an  accountant,  the  first  question  you  would 
ask  would  be,  "Who  prepared  this?"  Wouldn't  that  ordinarily  be 
the  first  question  you  would  ask  ? 

Mr.  Hart.  I  must  have  asked  that  question  ? 

The  Chairman.  You  must  have  asked  that  question. 

Mr.  Hart.  It  doesn't  appear  to  me  who  prepared  it.  There  it  is. 
It  has  been  filed. 

The  Chairman.  Suppose  you  wanted  to  question  some  figure  about 
it,  wouldn't  you  like  to  know  the  person  who  prepared  it  so  you  could 
check  with  him  and  get  some  explanation  of  some  of  the  items? 

]Mr.  Hart.  Not  unless  I  found  it  necessary  to  question  it.  I  would 
just  get  a  co])y  of  a  return,  and  if  I  found  something  wrong  with  it, 
something  I  didn't  think  was  right,  naturally  we  would  inquire  who 
prepared  it. 

The  Chairman.  You  have  no  idea  who  prepared  it  ? 


60  ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  Hart.   I  tliiiik  the  return  shows.    I  know  tlie  orij^inal  shows. 

The  Chairman.  AVhat  is  your  independent  idea  as  to  who  prepared 
it  ?    You  must  have  some  idea. 

Mr.  Hart,  Mr.  Erickson  had  it  prepared.  I  suppose  his  account- 
ants did.  I  don't  know.  I  didn't  do  any  work  for  Erickson.  I  never 
met  the  man. 

The  Ch airman.  Is  it  your  understanding  that  the  tax  return  was 
prepared  in  New  Jersey  or  New  York  and  sent  down  to  Mr.  O'Rourke, 
or  that  a  copy  was  sent  to  him  ? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  How  did  you  get  that  understanding? 

Mr.  Hart.  Because  1  got  the  return  from  Mr.  O'Rourke.  He 
brought  it  to  me. 

The  Chairman.  Why  do  you  think  they  were  prepared  in  New 
York  or  New  Jersey  ? 

Mr.  Hart.  Because  that  is  where  Erickson  operates.  I  suppose 
it  is  from  there. 

The  Chairman.  Have  you  had  any  correspondence  with  the  man 
who  prepared  it? 

Mr.  Hart,  No. 

The  Chairman.  Did  you  ever  see  Mr.  Erickson? 

Mr.  Hart.  No,  sir;  not  to  my  knowledge.  I  may  have  seen  him, 
but  not  that  I  know  of. 

The  Chairman.  Mr,  Halley,  what  other  information  is  in  these  files? 

Mr.  Halley,  I  want  to  offer  in  evidence,  so  they  can  be  examined 
by  the  committee  after  the  witness  has  testified,  a  box  containing 
canceled  checks,  vouchers,  and  bank  statements. 

The  Chairman.  It  will  be  received  in  evidence  and  made  a  part 
of  the  record, 

(Box  containing  canceled  checks,  vouchers,  and  bank  statements 
received  in  evidence  as  exhibit  No,  39A.  Later  returned  to  witness 
after  analysis  by  committee.) 

Mr,  Halley.  I  offer  in  evidence  two  folders  containing  income  tax 
returns,  copies,  work  papers,  and  other  documents  relating  to  income- 
tax  returns  of  Mr,  O'Roui'ke,  submitted  here  by  Mr,  Hart, 

The  Chairman.  Let  them  be  marked  and  received  in  evidence. 

(Folders  of  income  tax  returns,  work  papers,  etc.,  received  in 
evidence  as  exhibit  No.  39B.    Later  returned  to  w^itness. ) 

Mr.  Halley.  And  I  offer  in  evidence,  as  a  separate  exhibit,  but  part 
of  exhibit  No,  39 A,  an  exhibit  comprising  15  checks,  either  payable 
to  or  endorsed  by  or  bearing  notations  with  the  name  "Mickey  Cohen." 

The  Chairman.  Let  them  be  marked  and  received  in  evidence. 

(Group  of  15  checks  payable  to  or  endorsed  by  Mickey  Cohen  re- 
ceived in  evidence  as  exhibit  No.  39C.   Later  returned  to  witness. ) 

The  Chairman,  I  wanted  to  ask  Mr.  Hart  one  or  two  questions 
about  those  checks.  They  may  have  been  asked  while  I  was  out  of 
the  room. 

Senator  Hunt.  They  were  not. 

The  Chairman.  Mr.  Hart,  do  you  know  how  this  operation  worked, 
this  lay-off  business ;  how  these  checks  happened  to  be  issued  to  Mickey 
Cohen  and  to  the  Atlantic  National  Bank  with  Mickey  Cohen's  name 
on  the  left  of  it? 

Mr.  Hart.  Well,  of  course  I  don't  have  any  personal  knowledge  of 
that,  but  I  am  satisfied  I  know,  but  I  can't  swear  that  I  know. 


ORGANIZED    CR'IME    IN    INTERSTAT'E    C'OMAIERCE  61 

Senator  Hunt.  Give  us  your  opinion. 

The  Chairman.  Tell  us  what  you  know  about  it, 

Mr.  Hart.  As  I  understand  it,  Mickey  Cohen  telej^honed  Mr. 
O'Rourke  and  <2:ave  him  some  business  and  they  discussed  matters  and 
Mr.  O'Rourke  agreed  to  take  some  business,  and  they  would  have  a 
set  agreement  to  pay,  whenever  either  one  owed  the  other  as  much  as 
$5,000,  and  the  settlements  always  went  west.  There  didn't  any  of 
them  come  east. 

The  Chairman.  You  mean  that  Mickey  Cohen  would  lay  off  bets 
with  Mr.  O'Eourke? 

Mr.  Hart.  I  would  guess  so.  I  wouldn't  know  whether  it  was  lay 
off  or  what  it  was. 

The  Chairman.  And  the  other  way  around ;  Mr.  O'Eourke  would 
bet  with  or  lay  off  bets  with  Mickey  Cohen  ? 

]Mr.  Hart.  Yes,  sir. 

The  Chairman.  Is  this  referring  to  bets  on  the  horses  or  is  this  in 
connection  with  the  Boca  Eaton  operation  ? 

Mr.  Hart.  Both  of  those.  Boca  Eaton  is  a  horse-book  operation. 
Those  checks  are  all  in  connection  with  bets  on  horses. 

The  Chairman.  They  haven't  anything  to  do  with  his  crap  game 
in  West  Palm  Beach  ? 

Mr.  Hart.  No,  sir. 

The  Chairman.  There  is  one  check  in  particular  that  I  want  to  get 
your  explanation  of,  and  that  is  the  check  dated  October  17,  1947, 
payable  to  the  Atlantic  National  Bank  and  made  by  John  F,  O'Eourke. 
In  the  left-hand  corner  is  a  notation  "Mickey  Cohen  B."  How  was 
that  check  cashed  ?    It  has  no  endorsement. 

Mr.  Hart.  That  was  the  initial  settlement,  I  believe,  and  that  was 
cashed  and  the  money  sent  by  Western  Union  to  ]Mickey  Cohen.  I 
believe  that  is  correct  on  that  check. 

The  Chairman.  Then  Mr.  O'Eourke  apparently  took  this  check  to 
the  Atlantic  National  Bank  and  withdrew  the  money  in  cash,  desig- 
nating that  it  was  withdrawn  in  order  to  get  it  to  Mickey  Cohen,  and 
apparently  he  took  the  cash  and  sent  it  to  Mickey  Cohen  by  Western 
Union  ? 

Mr.  Hart.  I  think  that  is  correct. 

The  Chairman.  That  check  was  never  sent  through  the  mails  to 
Mickey  Cohen,  was  it? 

Mr.  Hart.  No,  sir. 

The  Chairman.  Eeferring  here  to  the  check  of  October  17,  1947, 
which  apparently  is  the  same  date  as  the  check  we  have  been  referring 
to,  check  No.  127,  there  is  a  check  of  $3,495,  payable  to  Mickey  Cohen 
with  a  little  notation  "B"  in  the  upper  part,  and  signed  or  made  by 
John  F.  O'Eourke.  That  check  bears  the  endorsement  of  Mickey 
Cohen  and  Michael  Cohen.  Apparently  it  was  deposited  m  the 
Hollywood-McFadden  branch  of  the  Citizens'-something  bank  in  Los 
Angeles,  Calif. ;  is  that  correct  ? 

Mr.  Hart.  I  think  so ;  yes. 

The  Chairman.  How  about  the  checks  that  Mickey  Cohen  sent  to 
Mr.  O'Eourke? 

Mr.  Hart.  Well,  I  don't  know  whether  Mickey  Cohen  was  smarter 
than  Mr.  O'Eourke  or  whether  he  had  some  hot  horses  but  there  were 
never  any  checks  that  came  that  way. 


62  ORG!A]SnZED   CRIME    IN    ESTT'ERSTATE    COMMERCE 

The  Chairman.  So  that  check  would  have  been  sent  through  the 
mails? 

Mr.  Hart.  That  is  right.  He  got  him  hooked  at  the  start  and  kept 
him  hooked. 

The  Chairman.  Mr.  O'Ronrke  would  bet  on  horses  in  California 
and  would  bet  through  Mickey  Cohen  and  he  always  lost ;  is  that  the 
way  it  was,  or  a  lay-off  proposition  ? 

Mr.  Hart.  No,  sir.  Mickey  Cohen  did  most  of  the  betting  with 
him  and  his  horses  won. 

The  Chairman.  Where  is  the  record  of  the  transactions  of  the  bets 
between  John  F.  O'Rourke  and  Mickey  Cohen  ? 

Mr.  Hart.  I  never  have  seen  any.     These  are  the  settlements. 

The  Chairman.  There  would  have  to  be  some  way  of  keeping  up 
with  them.  These  are  very  substantial  amounts  of  money  that  they 
have  been  passing  around. 

Mr.  Hart.  Evidently  they  do  keep  it. 

The  Chairman.  Here  is  one  check  dated  June  7, 1948,  No.  292,  made 
out  to  cash  in  the  amount  of  $5,000.  That  one  is  endorsed  by  Lyle 
Woodhall;  is  that  correct? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  Is  that  for  the  purpose  of  getting  money  and  send- 
ing it  out  by  Western  Union  to  Mickey  Cohen  ? 

Mr.  Hart.  There  was  one  sent  by  Western  Union  and  one  sent  by 
cashier's  check,  I  believe,  and  I  don't  know  which  is  which,  to  tell 
you  the  truth,  but  this  man  who  endorsed  this  check  is  Mr.  O'Rourke's 
cashier. 

The  Chairman.  Lyle  Woodhall? 

Mr.  Hart.  Yes,  sir. 

The  Chairman.  "Wliat  is  this  notation  in  the  upper  left-hand 
corner  ? 

Mr.  Hart.  The  B  means  bank  roll,  and  the  C  means  Mickey  Cohen. 

The  Chairman.  You  are  satisfied  that  these  checks  or  the  proceeds 
from  these  checks  were  sent  to  Mickey  Cohen  ? 

Mr.  Hart.  I  have  no  reason  to  doubt  it. 

The  Chairman.  Anyway,  you  reported  it  in  the  work  sheets  or 
income  tax  as  disbursements  ? 

Mr.  Hart.  That  is  right. 

The  Chairman.  Did  you  check  the  Western  Union  records  to  see 
whether  they  had  been  sent  ? 

Mr.  Hart.  No,  sir.  During  the  course  of  this  income-tax  examina- 
tion, the  revenue  agents  checked  that  and  gave  me  the  information. 

Senator  Hunt.  Are  these  both  Mr.  O'Rourke's  signatures?  They 
obviously  are  not  the  same  handwriting.     So  which  is  his  signature  ? 

The  Chairman.  For  the  record,  we  are  comparing  checks  Nos.  155 
and  127. 

Mr.  Hart.  I  think  they  are  both  his. 

Senator  Hunt.  These  signatures  appear  to  be  entirely  different. 

Mr.  Hart.  I  don't  see  much  difference.  It  is  a  different  pen,  but  I 
am  sure  that  is  all  Mr.  O'Rourke's  writing.  It  is  written  apparently 
with  a  heavier  hand  or  a  different  pen,  but  I  believe  those  are  both 
his  writing. 

Senator  Hunt.  There  is  a  difference  in  the  F. 

Mr.  Hart.  That  is  the  only  difference  I  see — in  the  F.  You  take 
the  R.     It  is  a  peculiar  R  and  it  follows  right  straight  through. 


ORGANIZED    CR'IME    IN    INTERSTATE    COMMERCE  63 

Senator  Hunt.  I  am  not  a  handwriting  expert,  but  I  don't  see  any 
similarity  about  them. 

The  Chairman.  Is  there  anything  further? 

]\Ir.  H ALLEY.  I  have  one  or  two  questions  further.  Would  you 
explain  the  items  listed  under  "bank  roll"?  What  is  the  bank  roll? 
I  am  now  referring  to  the  1948  work  sheets. 

Mr.  Hart.  Those  are  the  funds  from  which  they  pay  their  losing 
bets. 

Mr.  Halley.  Is  that  a  cash  fund  ? 

Mr.  Hart.  Yes,  sir. 

Mv.  Halley.  I  presume  that  at  the  beginning  of  the  year,  January 
1,  1948,  Mr.  O'Rourke  started  out  with  a  certain  amount  of  money  in 
cash  which  he  calls  his  bank  roll ;  is  that  right? 

Mr.  Hart.  That  is  right. 

Mr.  Halley.  And  as  it  is  diminished,  it  is  replenished  with  cash 
drawn  from  the  bank  by  check  ? 

Mr.  Hart.  Yes,  sir, 

Mr.  Halley.  For  example,  you  show  here  payments  to  the  bank  roll 
of  $5,000,  $3,000,  $5,000,  $2,000,  and  so  on  down  the  line,  making  a  total 
of  payments  to  the  bank  roll  of  $221,400;  is  that  right? 

Mv.  Hart.  That  is  right. 

Mr.  Halley.  AVhat  was  his  original  bank  roll  as  of  January  1, 1948  ? 
What  did  he  start  with? 

Mr.  Hart.  Apparently  there  was  no  change  from  1947.  I  will  have 
to  determine  it.    Apparently  there  was  no  change  from  1947. 

Mr.  Halley.  How  much  did  he  have  in  this  cash  bank  roll  on  Janu- 
ary 1,  1948  ? 

'Mr.  Hart.  The  standard  bank  roll  has  been  $3,000. 

Mr.  Halley.  Do  you  mean  that  that  is  the  capital  that  he  uses? 

Mr.  Hart.  Tliat  is  the  bank  roll  he  handled  for  the  cashier. 

IMr.  Halley.  Does  he  have  a  bank  roll  at  the  book  as  well  as  at  the 
crap  game? 

Mr.  Hart.  They  use  the  same  one.  They  use  it  in  the  book  in  the 
daytime  and  the  crap  game  at  night. 

Mr.  Halley.  And  when  the  bank  roll  needs  more  money,  a  check  is 
just  made,  cash  is  taken  out  and  put  in  the  bank  roll ;  is  that  right? 

Mr.  Hart.  That  is  right. 

Mr.  Halley.  How  do  you  know  that  the  money  that  goes  into  the 
bank  roll  is  actually  paid  to  pay  losses  in  gambling? 

Mr.  Hart.  I  haven't  said  I  did  know. 

Mr.  Halley.  Is  there  any  way  anybody  in  the  world  would  know 
that  Mr.  O'Rourke  is  not  putting  that  money  in  his  pocket,  or  some 
substantial  amount  which  in  1948  amounted  up  to  $221,400  ? 

Mr.  Hart.  I  don't  know  how  anyone  would  know. 

Mr.  Halley.  I  have  no  other  questions. 

The  Chairman.  With  regard  to  these  checks  to  replenish  the  bank 
roll,  how  would  they  be  made  ?  Cashed  and  the  money  taken  out  of  the 
bank? 

Mr.  Hart.  Cashed  at  the  bank. 

The  Chairman.  That  would  be  done  by  Mr.  O'Eourke  himself? 

Mr.  Hart.  He  writes  the  checks  and  may  send  somebody  to  cash 
them. 

The  Chairman.  May  send  his  cashier  around  ? 


64  ORGANIZED    CEIIME    IN   INTERSTATE    COMMERCE 

Mr.  Hart.  Or  some  other  employee  who  is  available  at  the  time. 

The  Chairman.  Are  there  any  records  at  Boca  Raton  or  at  the  dice 
game  to  show  that  these  replenishments,  as  represented  by  checks,  were 
actually  receipted  into  the  bank  roll? 

Mr.  Hart.  I  don't  think  so. 

Mr.  HaiXey.  Don't  you  keep  the  betting  sheets  ? 

Mr.  Hart.  I  probably  had  the  betting  sheets,  but  they  sure  don't 
keep  them. 

Mr.  Halley.  What  do  they  do  with  them  ? 

Mr.  Hart.  They  are  destroyed. 

Mr.  Halley.  Each  day? 

Mr.  Hart.  I  think  daily. 

Mr.  Halley.  What  motive  would  they  have  to  destroy  them  if 
these  are  honest  records  that  we  have  been  talking  about  ? 

Mr.  Hart.  They  have  frequent  raids  by  the  law-enforcement  officials 
and  they  don't  like  to  have  these  records  around  as  evidence  to  be 
picked  up  by  a  J.  P.  or  constable  or  whoever  comes  in  to  raid  the  place. 

The  Chairman.  In  what  county  is  Palm  Beach  or  West  Palm 
Beach? 

Mr.  Hart.  Palm  Beach  County. 

The  Chairman.  Wlio  is  the  sheriff  up  there  ? 

Mr.  Hart.  John  Kirk. 

The  Chairman.  How  long  has  he  been  the  sheriff  ? 

Mr.  Hart.  Maybe  3  or  4  years. 

The  Chairman.  This  dice  game  in  West  Palm  Beach  is  something 
anybody  can  walk  in  to  that  wants  to  play  ? 

Mr.  Hart.  I  think  it  was ;  yes,  sir. 

The  Chairman.  And  the  Boca  Raton  operation  was  something  that 
anybody  out  there  who  wanted  to  participate  could  participate  in? 

Mr.  Hart.  I  have  never  been  there.  I  don't  know  a  thing  about  it, 
really.     I  don't  know  where  it  was  operated. 

The  Chairman.  That  is  all. 

Senator  Hunt.  Mr.  O'Rourke  carried  on  his  book  operations  to  a 
considerable  extent  with  telephone  service,  didn't  he  ? 

Mr.  Hart.  During  the  times  when  his  front  door  was  locked,  he 
did  some  telephone  business,  and  these  big  transactions  with  Mickey 
Cohen  where  he  lost  pretty  near  everything  he  had  was  by  telephone. 

Senator  Hunt.  Someone  would  telephone  in  a  bet  and  if  he  hap- 
pened to  win,  Mr.  O'Rourke  would  need  to  pay  him.  What  process 
would  he  use  in  paying  him?  Would  he  send  cash  by  messenger  or 
woidd  he  make  him  call  and  collect  the  bet  or  write  him  a  check  and 
mail  him  his  winnings  ? 

Mr.  Hart.  Well,  most  of  the  checks  that  are  written  are  to  pay 
bets  from  out  of  town.  The  local  people  who  bet  over  the  telephone 
and  win  come  in  the  next  day  and  collect. 

Senator  Hunt.  Those  checks  that  went  out  of  town,  of  course, 
would  go  through  his  checking  account  and  would  go  through  your 
accounting  in  making  up  his  income  tax? 

Mr.  Hart.  That  is  right. 

Senator  Hunt.  That  is  all. 

The  Chairjvian.  With  regard  to  these  local  people  who  would  call 
up — say  John  Jones  would  call  up  and  want  to  bet  $10  on  a  certain 
horse,  would  Mr.  O'Rourke  take  the  bet  when  Mr.  John  Jones  would 
put  his  money  up,  or  would  it  be  on  credit? 


ORGANIZED   CRIME    IN   INTERSTAT'P    COMMERCE  65 

Mr.  Hart.  At  the  moment  it  would  be  on  credit.  If  he  lost  he  would 
either  come  and  pay,  or  they  would  come  out  to  collect.  If  he  won 
they  usually  made  him  come  after  it. 

The  Chairman.  Suppose  Mr.  O'Rourke  ^ot  a  bet  of  $10,000  or  $12,- 
000,  too  big  an  amount  for  him,  would  that  be  when  he  would  lay  some 
of  it  off  to  some  other  man? 

Mr.  Hart.  Yes ;  either  a  big  bettor  or  a  lot  of  little  bettors  whenever 
he  got  more  on  a  particular  horse  than  he  could  carry. 

The  Chairman.  Who  would  he  lay  off  to? 

Mr.  Hart.  Sometimes  he  would  lay  it  off  locally. 

The  Chairman.  Mention  one  name.  Mr.  Chappell  mentioned  one 
that  lived  in  Miami. 

Mr.  Halley.  Luke  Church. 

Mr.  Hart.  He  laid  off  bets  to  him,  and  there  are  others,  but  I  just 
don't  remember  the  names. 

The  Chairman.  He  lays  off  with  Frank  Erickson  ? 

Mr.  Hart.  He  might. 

The  CiiAiR]\rAN.  He  might  lay  off  to  Mickey  Cohen  ? 

Mr.  Hart.  Mickey  Cohen's  operations  might  have  been  lay  off; 
yes,  sir.  '  _  ^ 

The  Chairman.  That  is  all. 

Mr.  H ALLEY.  Thank  you. 

Senator  Hunt.  I  want  to  ask  you  a  few  questions.  These  checks 
are  most  interesting  because  of  the  tremendous  amounts  involved 
and  being  a  one-way  street  apparently  on  which  Mr.  O'Rourke  never 
won. 

Would  you  be  in  a  position  to  tell  us  whether  or  not  Mr.  O'Rourke 
was  made  to  remit  these  moneys  because  of  any  threats  within  gang- 
land, so-called? 

Mr.  Hart.  I  never  heard  of  any  such  things ;  no,  sir.  He  took  the 
bets  and  he  lost  and  he  paid  off.  Gamblers  have  a  sort  of  code  of 
ethics  of  their  own  and  they  trust  one  another  and  if  they  lose  they 
pay  off. 

Mr.  Halley.  What  happens  if  they  don't  pay  off,  if  the  trust  doesn't 
work  ? 

Mr.  Hart.  I  have  never  known  of  a  local  instance  where  anything 
happened  where  he  wasn't  paid  off.  I  don't  think  I  know  of  a  bet 
where  a  book  didn't  pay  off.  There  has  been  a  few  colored-town  opera- 
tions where  there  were  some  mysterious  shootings  reputed  to  be  caused 
by  bets  not  being  paid  off  on  bolita. 

Mr.  Halley.  Isn't  it  a  fact  that  you  don't  live  long  in  the  gambling 
business  if  you  don't  pav  off? 

Mr.  Hart.  I  presume  that  is  true. 

The  Chairman.  Did  Mr.  O'Rourke  have  a  policy  operation  or  a 
numbers  racket  or  any  connection  with  that  ? 

Mr.  Hart.  No,  sir. 

The  Chairman.  During  any  of  the  times  that  you  kept  his  records  ? 

Mr.  Hart.  No,  sir ;  not  that  I  know  of. 

The  Chairman.  Was  it  brought  out  how  many  telephones  he  had 
in  the  Boca  Raton  operation,  or  do  you  know  ? 

Mr.  Hart,  No,  sir ;  I  don't  know. 

The  Chairman.  All  right.    Is  there  anything  further  ? 

Mr.  Halley.  Not  of  this  witness. 

The  Chairman.  Thank  you,  Mr.  Hart. 


66  ORGIANIZED    CRIME    IN    INTERSTATE    COMMERCE 

TESTIMONY  OF  JOHN  F.  O'EOURKE,  WEST  PALM  BEACH 

Mr.  Halley.  What  is  your  address,  Mr.  O'Kourke? 

Mr.  O'RouRKE.  521  Second  Street. 

]Mr.  Halley.  Do  you  have  a  x^lace  of  business  ? 

Mr.  O'RouRKE.  I  did  have. 

INIr.  Halley.  Where  was  it  ? 

Mr.  O'RouRKE.  It  was  in  the  Datura  Arcade. 

The  Chairman.  This  is  in  West  Palm  Beach  ? 

Mr.  O'RouRKE.  That  is  right. 

The  Chairman.  Mr.  O'Rourke,  will  you  rise  and  be  sworn? 

Do  you  solemnly  swear  that  the  testimony  you  will  give  tlie  com- 
mittee will  be  the  truth,  the  whole  truth,  and  nothing  but  the  truth, 
so  help  you  God  ? 

Mr.  O'RouRKE.  I  do. 

Mr.  Halley.  Wliat  business  did  you  have  there  ? 

Mr.  O'Rourke.  Bookmaking. 

Mr.  Halley.  You  said  it  has  been  closed  ? 

Mr.  O'Rourke.  Yes;  but  we  sneak  a  lick  with  a  customer  once  in 
a  while. 

Mr.  Halley.  You  say  they  cut  your  wire  off  ? 

Mr.  O'Rourke.  We  lost  it. 

Mr.  Halley.  What  wire  did  you  have  ? 

Mr.  O'Rourke.  I  don't  know  w^iere  that  wire  came  from.  As  far 
as  I  know,  it  was  the  one  that  was  leased. 

Mr.  Halley.  Who  did  you  lease  it  from  ? 

Mr.  O'Rourke.  I  couldn't  tell  you  the  name  of  tliat  company  to 
save  my  soul. 

Mr.  Halley.  I  think  you  had  better  tell  us  the  name  of  the  com- 
pany. 

Mr.  O'Rourke.  I  will  find  out  and  tell  you,  but  I  swear  I  can't  give 
you  the  title  of  it. 

Mr.  Halley.  How  long  did  you  have  the  wire? 

Mr.  O'Rourke.  I  guess  the  wire  I  had  6,  7,  or  8  years. 

Mr.  Halley.  And  who  cut  it  off  ? 

Mr.  O'Rourke.  I  imagine  the  State  did. 

Mr.  Halley.  When  you  originally  got  the  wire,  who  did  you  see; 
who  did  you  talk  to  ? 

Mr.  O'Rourke.  That  has  been  so  long  ago — I  think  it  changed 
hands  since  then. 

Mr.  Halley.  Wlio  did  you  talk  to  then  ? 

Mr.  O'Rourke.  I  just  can't  remember.  I  don't  remember  who  it 
was.  In  fact,  I  can't  recall  who  it  was.  I  think  it  was  in  1932,  if  I 
remember  right. 

Mr.  Halley.  Can  you  give  the  name  of  anyone  with  whom  you 
dealt  in  connection  with  that  wire  ? 

Mr.  O'Rourke.  Yes ;  I  can  give  you  a  man,  a  fellow  by  the  name  of 
Burns. 

Mr.  Halley.  You  paid  off  a  man  by  the  name  of  Burns:  is  that 
right? 

Mr.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  What  is  his  full  name? 

Mr,  O'Rourke.  Dave. 


ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE  67 

Mr.  Halley.  David  Burns? 

Mr.  O'KouRKE.  Yes,  sir. 

Mr.  Halley.  Where  does  he  live  ? 

Mr.  O'RouRKE.  I  think  he  lives  in  Miami. 

Mr,  Halley.  Wliere  do  you  pay  him  ? 

Mr.  O'RouRKE.  He  comes  around  to  the  place  to  collect  the  money. 

IVIr.  Halley.  He  comes  to  your  place  of  business  to  collect  ? 

Mr.  O'RouRKE.  That  is  rio;ht. 

Mr.  Halley.  Do  you  pay  him  by  clieck  or  in  cash  ? 

JNIr.  O'EouRKE.  By  check. 

Mr.  Halley.  Supposing  something  goes  wrong  with  the  wire,  to 
whom  do  you  complain  ? 

Mr.  O'RouRKE.  I  don't  handle  that,  to  be  frank  with  you.  AVe 
don't  have  any  operation  witli  the  wire.  As  far  as  that  is  concerned, 
it  is  more  or  less  comes  through — I  don't  fool  with  it.  I  don't  com- 
plain of  operating  it  or  fool  with  it.  I  don't  know  who  the  man  who 
operates  it  calls.     I  guess  he  calls  some  serviceman. 

Mv.  Halley.  Let's  quit  beating  around  the  bush.  Isn't  it  a  fact 
tliat  you  are  protecting  the  people  who  are  furnishing  you  with  the 
wire  { 

Mr.  O'RouRKE.  I  can't  answer  truthfully  because  I  don't  handle 
that  part  of  it. 

Mr.  Halley.  You  just  in  your  own  way,  without  my  trying  to  ask 
a  lot  of  questions  tell  this  committee  where  you  get  your  wire  serv- 
ice— from  whom  and  what  the  arrangements  are. 

]Mr.  O'RouRKE.  I  told  you — Mr.  Bui-ns  comes  around  and  collects 
twice  a  week  and  as  far  as  me  knowing  the  title  of  the  company  or 
who  lias  the  contract  or  anj^thing  about  that,  I  can't  tell  you  truth- 
fully  because  I  don't  know. 

Mr.  Halley.  Where  can  you  find  Mr.  Burns  in  Miami  ? 

Mr.  O'RouRKE.  I  don't  know  his  address. 

]\Ir.  Halley.  You  mean  a  man  whom  you  don't  know  where  to  locate 
comes  to  your  place  of  business  twice  a  week  to  collect  money? 

Mr.  O'RouRKE.  No ;  they  don't  come  twice  a  week.  Sometimes  once 
a  month.  That  is  when  we  were  operating ;  maybe  once  ever  2  months, 
maybe  he  comes  tAvice  a  week  or  twice  a  month. 

Mr.  Halley.  For  whom  did  Mr.  Burns  work? 

Mv.  O'RouRKE.  I  can't  tell  you  that.  I  guess  he  comes  from  the 
people  who  had  the  wire. 

Mv.  Halley.  Don't  you  know  that? 

Mr.  O'RoiKKE.  I  know  you  people  know  the  name  of  it,  but  I  can't 
recall.     If  I  did,  I  would  give  it  to  you,  honestly. 
''  Mr.  Halley.  Did  you  ever  have  a  contract  for  the  use  of  the  wire  ? 

Mr.  O'RouRKE.  No  contract. 

Mr,  Halley.  An  oral  agreement? 

Mr.  O'RouRKE.  Yes,  sir. 
^■^  Mr.  Halley.  Wliat  were  the  terms  of  the  agreement  ? 

INIr.  O'RouRKE.  Only  so  much  a  week.  In  the  summer  we  pay  $50 
a  week,  and  maybe  in  the  winter  it  M'ent  up  to  $125  a  week. 

Mr.  Halley.  Is  that  the  fact;  is  that  your  best  recollectio.J 

Mr.  O'RouRKE.  In  certain  months  during  the  summertime,  when  it 
was  busy,  we  paid  $75  a  week,  and  it  would  go  up  with  the  season. 

Mv.  Halley.  Who  would  fix  the  amount  ?  Would  Mr.  Burns  come 
in  and  tell  you  what  you  were  going  to  pay  ? 


68  ORGlAISriZED   CHIME    IN   INTERSTAT'E    COMMERCE 

Mr.  O'RouRKE.  He  would  say,  "John,  we  are  going  to  raise  the  price 
now.     It  is  $150,"  or  whatever  it  was. 

Mr.  Halley.  Did  you  ever  argue  about  it  ? 

Mr.  O'RouRKE.  No,  I  never  did. 

Mr.  Halley.  Did  the  repair  man  come  from  time  to  time  to  fix 
the  wire? 

Mr.  O'RouRKE.  The  wire  was  not  directly  in  the  place.  Some  re- 
pairman must  have  come  in — I  don't  handle  that  at  all. 

Mr.  Halley.  Who  handled  the  wire  at  your  place  of  operations  ? 

Mr.  O'RouRKE.  There  isn't  any  individual  that  handles  it  at  my 
place  of  operations.  If  you  want  me  to  explain  it,  I  will  give  you  the 
whole  detail. 

Mr.  Halley.  I  would  appreciate  it. 

Mr.  O'RouRKE.  For  the  Senators'  benefit  and  for  the  committee's 
benefit,  I  have  nothing  to  hide  on  it. 

In  West  Palm  Beach,  the  wire  service  comes  in  into  a  central  office, 
and  we  have  a  broadcasting  system  that  runs  out  there  through  a 
speaker,  just  like  you  run  a  speaker  from  this  room  to  over  there. 
That  is  the  way  it  is  handled. 

Mr.  Halley.  Where  is  the  central  office? 

Mr.  O'Rourke.  It  doesn't  come  directly  into  the  place. 

Mr.  Halley.  "Wliere  is  the  central  office? 

Mr.  O'Rourke.  Evidently  the  central  office  is  not  there  now. 

Mr.  Halley.  Where  was  it  last? 

Mr.  O'Rourke.  Last  it  was  in  a  room  across  in  the  Datura  Arcade 
from  where  I  am  in  another  room.  There  were  several  books  run 
there  that  were  getting  this  information  and  we  run  the  wire  speakers 
out  from  there. 

Mr.  Halley.  Where  did  the  service  come  from?  Did  it  come  up 
from  Miami? 

Mr.  O'Rourke.  I  can't  swear  to  that,  but  I  can  give  you  my  opinion 
if  you  want  it.  I  can't  swear  because  I  don't  know.  I  think  it  was  a 
leased  wire  from  one  end  of  the  State  to  the  other,  but  I  can't  swear 
to  it.     I  am  just  paying  them  off  as  a  service. 

Mr.  Halley.  What  is  your  present  business  ? 

Mr.  O'Rourke.  I  am  not  doing  anything.    I  am  looking  for  a  job. 

Mr.  Halley.  '^Vlien  did  you  last  run  a  book  ? 

Mr.  O'Rourke.  You  mean  an  open  place  ? 

Mr.  Halley.  Open  or  closed. 

Mr.  O'Rourke.  I  still  take  a  few  bets  on  horses  now. 

Mr.  Halley.  In  West  Palm  Beach  ? 

Mr.  O'Rourke.  Yes.  Any  time  a  friend  calls  me  up  and  I  have 
friends  who  want  to  bet  on  a  horse. 

Mr.  Halley.  Do  you  do  that  by  telephone  ? 

Mr.  O'Rourke.  Not  necessarily.   I  haven't  a  telephone  in  my  place. 

Mr.  Halley.  How  do  you  get  the  business  ?  You  said  "any  time  a 
friend  calls  me  up." 

Mr.  O'Rourke.  Calls  me  at  home  or  anywhere  else,  or  if  I  see  him  on 
the  street  or  run  in  to  him. 

Mr.  Halley.  Where  do  you  lay  off  your  bets  now  ? 

Mr.  O'Rourke.  I  don't  get  that  much  business. 

Mr.  Halley.  You  don't  lay  off  at  all  ? 

Mr.  O'Rourke.  No. 


ORGANIZED   CMME    IN   INTERSTATE    COMMERCE  69 

Mr.  Halley.  When  did  you  last  operate  openly  ? 

Mr.  O'RouRKE.  I  think  it  was  around  February  a  year  ago ;  around 
that  time. 

Mr.  Halley.  February  of  1949  ? 

Mr.  O'RouRKE.  Yes.  Eight  after  this  State  administration  went  in. 
I  remember  it  was  shortly  after  that.  It  was  around  February.  I 
am  quite  sure.    It  was  right  after  the  State  administration 

Mr.  Halley.  They  shut  you  down  ? 

Mr.  O'EouRKE.  No ;  it  was  a  local  situation  more  or  less.  You  know 
how  local  things  are. 

Mr.  Halley.  I  think  the  committee  would  like  to  know  a  little  more 
about  how  this  particular  situation  worked. 

Mr.  O'EouRKE.  It  was  just  one  of  those  things;  everything  went 
down.   We  just  were — the  wire  service  was  closed  up. 

Mr.  Halley.  Who  did  it?    The  sheriff? 

Mr.  O'Eourke.  The  sheriff  didn't  do  it. 

Mr.  Halley.  Who  closed  up  your  place  ? 

Mr.  O'Eourke.  It  was  closed  up  on  account  of — one  part  about  it 
was  on  account  of  the  grand  jury  session ;  the  grand  jury  investigating. 

]VIr.  Halley.  The  grand  jury  ? 

Mr,  O'Eourke.  Yes ;  they  are  still  hot  now. 

Mr.  Halley.  Wlio  runs  the  grand  jury  ?    Is  there  a  district  attorney  ? 

Mr.  O'Eourke.  State's  attorney. 

Mr.  Halley.  For  the  county  ? 

Mr.  O'Eourke.  Yes. 

]\Ir.  Halley.  And  when  they  started,  everybody  stopped  open  oper- 
ations ? 

Mr.  O'Eourkje.  Yes.    We  operate  at  the  discretion  of  the  people. 

j\Ir.  Halley.  Was  anybody  arrested? 

Mr.  O'Eourke.  I  was. 

Mr.  Hatjle.  Were  you  convicted  ? 

Mr,  O'Eourke.  No. 

Mr.  Halley.  Was  anybody  else  arrested? 

Mr.  O'Eourke.  No. 

Mr,  Halley.  What  happened  to  your  case  ? 

Mr.  O'Eourke,  It  was  a  funny  situation.  It  is  on  record,  I  hap- 
pended  to  be  attacked  by  the  flying  squad. 

Mr,  Halley,  Wlio  are  the  "flying  squad"? 

Mr.  O'Eourke.  The  beverage  department. 

Mr.  Haley,  Is  that  the  State  beverage  department? 

Mr.  O'Eourke.  Yes,  sir. 

Mr.  Halley.  What  would  they  be  doing  in  a  gambling  place?  Were 
you  also  selling  liquor? 

Mr,  O'Eourke,  No,  In  fact,  we  were  practically  closed  at  that  time 
when  they  came  in,  but  they  had  a  little  stand  in  there  that  sold  beer, 
and  that  carries  a  liquor  license.    Just  bottled  beer. 

Mr,  Halley,  You  were  arrested  for  selling  beer? 

Mr,  O'Eourke.  That  is  to  give  them  the  privilege  of  coming  in, 

Mr.  Halley^  Then  you  were  arrested  for  making  a  book;  is  that 
right  ? 

JNIr,  O'Eourke,  Yes, 

Mr.  Halley.  Is  that  case  still  pending? 

Mr.  O'Eourke.  No.  That  case  was  thrown  out  on  account  of  a  search 
warrant. 


70  ORGAAnZED    CRIME    IN    m'TERSTATE    COJVEVIERCE 

Mr.  Hallet.  What  judge? 

Mr.  O'RouRKE.  Justice  of  the  peace. 

Mr.  Halley.  What  is  his  name? 

Mr.  O'RouKE.  Harper. 

Mr.  Halley.  Do  you  know  his  full  name  ? 

Mr.  O'RouRKE.  No.    They  call  him  "Sleepy." 

Mv.  Halley.  "Sleepy''  Harper? 

Mv.  O'RouRKE.  Yes. 

Mr.  Halley.  In  West  Palm  Beach  ? 

I^Ir.  O'RouRKE.  Yes,  sir.    He  ran  for  the  legislature  at  that  time. 

Mr.  Halley.  Let's  go  back  to  the  good  old  days  in  1948.  You  were 
operating  wide  open  then ;  were  you  not. 

Mv.  O'RouRKE.  That  is  right. 

Mr.  Halley.  Nobody  arrested  you? 

Mr.  O'RoLRKE.  No.  ^ 

Mr.  Halley.  You  had  no  trouble  then  ? 

Mr.  O'RouRKE'.  No.    I  don't  know  of  any  at  that  time. 

Mr.  Halley.  Wliat  business  were  you  operating  in  1948  ? 

Mr,  O'RouRKE.  In  what  way  do  you  mean? 

Mr.  Halley.  You  had  certain  gambling  operations  in  1948.  Would 
you  specify  what  they  were  ? 

Mr.  O'RouRKE.  I  was  running  a  book,  and  I  had  a  night  crap,  game 
I'unning,  too. 

Mr.  Halley.  Both  in  West  Palm  Beach? 

Mv.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  Any  other  operations? 

Mr.  O'RoLTRKE.  Well,  if  you  call  agents  out  in  a  hotel  which  I 
included  in  the  book 

Mr.  Halley.  Would  you  specify  what  those  agencies  were? 

Mr.  O'Rourke.  Only  one,  in  the  Boca  Raton  Club. 

]Mr.  Halley.  Any  others? 

Mr.  O'Rourke.  No  ;  not  as  I  can  recall  now. 

Mr.  Halley.  The  Roney  Plaza  ? 

Mr.  O'Rourke.  No,  sir. 

Mr.  Halley.  No  other  hotels? 

Mr.  O'Rourke.  No. 

Mr.  Halley.  How  did  you  happen  to  go  into  the  Boca  Raton? 

Mr.  O'Rourke.  Well,  it  is  a  funny  story  there.  It  seems  that  most 
of  the  hotels  were  having  books  in  them  and  the  management  wanted 
to  put  in  a  book  down  there. 

ISIr.  Halley.  Do  you  mean  Mr.  Schine  ? 

Mr.  O'Rourke.  Yes,  sir.  And  for  entertainment  of  customers,  and 
it  was  kind  of  isolated,  and  I  went  down  and  talked  to  him. 

Mr.  Halley.  How  did  you  jfind  out  that  the  management  wanted 
to  put  a  book  in  ? 

^Ir.  O'Rourke.  He  contacted  me. 

Mr.  Halley.  Mr.  Schine  contacted  you  ? 

Mr.  O'Rourke.  Yes. 

Mr.  Halli:y.  Did  he  phone  you  ? 

Mr.  O'Rourke.  Yes. 

Mr.  Halley.  Mr.  Schine  personally  telephoned  you? 

Mr.  O'Rourke.  I  can't  swear  to  that,  but  he  had  someone  in  his 
hotel,  the  manager  or  someone  like  that. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  71 

Mr.  Halley.  You  are  talking  about  Mr.  Scliine  Sr.  ? 

Mr.  O'RouRKE.  Yes,  sir;  Morris. 

Mr.  Halley.  And  you  went  down  to  see  liini  at  the  Boca  Raton? 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Halley.  What  was  the  conversation?     What  year  was  this? 

Mr.  O'RouRKE.  1947,  I  think  it  was.     I  was  there  2  years. 

Mr.  Halley.  Started  in  the  fall  of 

Mr.  O'RouRKE.  The  first  year — what  year  was  it  that — this  is  1950 — 
1949— it  was  1947  or  1948. 

Mr.  Halley.  You  saw  him  at  the  hotel  ? 

Mr.  O'RouRKE.  Yes, 

Mr.  Halley.  That  would  be  in  the  fall  of  1947? 

Mr.  O'RouRKE.  That  would  have  been,  if  I  would  recollect,  before 
the  Christmas  holidays. 

Mr.  Halley.  Would  you  tell  the  committee  what  he  said  to  you 
and  what  you  said  to  him? 

Mr.  O'RouRKE.  The  conversation,  the  best  I  can  recollect,  would  be 
like  this:  Boca  Raton  had  quite  a  reservation  list  and  it  was  iso- 
lated— nothing  but  cabanas  and  a  golf  course — and  he  figured  if  I 
could  or  would  entertain  the  idea  he  would  like  to  have  someone  run 
a  book  there  for  his  customers  in  the  afternoon. 

Mr.  Halley.  Did  you  discuss  terms  and  rents  to  be  paid  to  the 
hotel? 

Mr.  O'Rourke.  He  discussed  them  more  frequently  than  I  did. 

Mr.  Halley.  Did  he  get  a  cut  of  the  profits  { 

Mr.  O'RouKKE.  No,  sir;  he  didn't.  He  was  cold-blooded.  I  tried 
to  make  him  that  proposition,  but  I  didn't  get  it. 

Mr.  Halley.  Didn't  he  want  to  take  a  cut  i 

Mr.  O'RouRKE.  No,  sir. 

Mr.  Halley.  What  did  he  get? 

Mr.  O'Rourke.  a  straight  fee. 

Mr.  Halley.  How  much  ? 

Mr.  O'RoURKE.  I  can't  recollect  that.  The  checks  will  show  that 
because  it  was  a  pretty  good  amount. 

Mr.  Halley.  How  did  jNIr.  Frank  Erickson  get  into  that  deal,  too? 

Mr.  OTvouRKE.  I  will  tell  you  how  that  was,  too:  In  talking  to 
Mr.  Schine,  he  said — in  fact,  the  deal  was  too  much  for  me  to  handle 
for  the  price  tliat  he  asked,  and  I  said,  "I  just  can't  go  for  it  because 
I  am  not  that  kind  of  man,"  and  he  said,  "I  w^ould  like  to  do  it,"  and 
I  said,  'T  would  like  to,  but  I  can't  consider  it,"  and  I  never  met  Mr. 
Erickson  and  didn't  know  of  him.  I  knew  of  him  by  reputation,  and 
he  said,  "Maybe  you  can  work  it  around  to  where  it  won^t  be  so  tough 
on  you,"  so  he  gave  me  Mr.  Erickson — where  Mr.  Erickson  was,  and 
I  don't  know  if  he  made  an  appointment  or  if  I  made  an  appointment. 
He  was  stopping  in  Miami  at  the  Roney  Plaza  Hotel,  and  I  said  that 
I  would  go  down  and  talk  to  him.  So,  I  went  down  and  talked  to  him 
and  he  said,  "John,  if  you  want  to  take  a  gamble  on  it,  I  will  go  with 
you."     That  was  practically  the  substance  of  the  conversation. 

Mr.  Halley.  You  were  in  as  50-50  partners  ? 

Mr.  O'Rourke.  That  is  right,  because  up  there  there  were  some 
customers  that  I  couldn't  have  handled  anyway  and  that  was  the 
whole  situation.  If  we  weren't  50-50  partners,  I  wouldn't  hardly  go 
in,  because  I  couldn't  takp.  the  situation  at  that  price  we  were  paying, 

68958— SO—pt.  1^—6 


72  ORGAJSnZED   CRIME    IN   INTERSTATE    COMMERCE 

and  he  said,  "Maybe  we  will  make  some  money  and  maybe  not;  but  if 
you  are  willing,  I  will  go  into  it  with  you." 

Senator  Hunt.  Do  you  remember  what  the  price  was?  What  was 
the  office  cost  per  month  ? 

Mr.  O'RouRKE.  This  was  on  a  season  basis. 

Senator  Hunt.  Would  it  be  $100  or  $1,000  a  month  % 

Mr.  O'RouRKE.  Not  per  month.  If  I  remember  right,  it  was  right 
around— I  don't  know— $27-  or  $25-  or  around  $20,000. 

Senator  Hunt.  $20,000  for  the  season  ? 

Mr.  O'RouRKE.  $20,000  for  the  full  season. 

Senator  Hunt.  And  you  made  the  check  to  Mr.  Schine  ? 

Mr.  O'RouRKE.  To  the  Boca  Raton  Club. 

Mr.  Halley.  In  your  bookmaking  business,  did  you  lay  off  your  bets 
with  anyone  ? 

Mr.  O'RouRKE.  Very  seldom.  Sometimes  I  received  bets  from 
them,  but  I  always  ran  my  business  this  way  and  tried  not  to  take  any 
more  than  I  could  handle  myself,  but  sometimes  I  would  make  per- 
sonal bets  myself — if  you  call  that  laying  off;  and  again,  if  you  have 
a  friend  that  maybe  wants  to  bet  a  little  money  and  you  didn't  want 
to  hold  it  or  maybe  I  want  to  bet  on  his  horse  or  make  a  bet,  too. 

Mr.  Halley.  Who  would  you  lay  off  to  ? 

Mr.  O'RouRKE.  Mostly  around  town;  the  local  boys  around  town. 

Mr.  Halley.  Could  you  name  the  people  ? 

Mr.  O'RouRKE.  Mr.  Risdon,  Mr.  McRichie. 

Mr.  Halley.  What  are  their  full  names  ? 

Mr.  O'RouRKE.  Joe  Risdon. 

Mr.  Halley.  In  Miami  or  West  Palm  Beach  ? 

The  Chairman.  Wliat  about  Tracy  ? 

Mr.  O'RouRKE.  Matty? 

Mr.  Halley.  Also  West  Palm  Beach? 

Mr.  O'Rourke.  Matthew  J.  Tracy.     He  is  from  West  Palm  Beach. 

Mr.  Halley.  Did  you  ever  lay  off  with  Luke  Church  in  Miami  ? 

Mr.  O'Rourke.  Not  directly  to  him. 

Mr.  Halley.  How  would  that  come  about  ? 

Mr.  O'Rourke.  That  would  go  to  a  fellow,  but  not  very  much  lay 
off,  either.     At  one  time  I  did,  too.     It  was  through  Dick  Evans. 

Mr.  Halley.  You  mean  througii  Dick  Evans  you  laid  off  to  Luke 
Church? 

Mr.  O'Rourke.  No.  I  think,  if  I  remember  right,  it  may  be  that 
Luke  Church  was  working  for  Dick  Evans.  They  had  some  con- 
nection ;  but,  so  far  as  Luke  Church  was  concerned,  I  wouldn't  know 
him  if  he  walked  into  tlie  room,  but  I  knew  Dick  very,  very  well. 

Mr.  Halley.  Wliere  is  Evans  ? 

Mr.  O'Rourke.  He  is  dead  now. 

Mr.  Halley.  Where  was  he? 

Mr.  O'Rourke.  He  was  in  Miami. 

Mr.  Halley.  Did  you  ever  lay  off  with  Erickson  ? 

Mr.  O'Rourke.  Never  did  any  business  with  Erickson.  Never, 
made  an  out-of-town  bet  with  Erickson  in  mv  life.  The  only  trans- 
action with  Erickson  was  with  the  Boca  Ratoii  Club. 

Mr.  Halley.  On  the  Boca  Raton  Chib  you  actuallv  ran  the  book? 

Mr.  ORouRKE.  No;  he  had  a  man  there". 


ORGANIZED  CEIIME    IN   INtTERSTATE    COMMERCE  73 

Mr.  Halley.  He  had  a  man  there? 

Mr.  O'RouRKE.  Yes. 

Mr.  Halley.  Did  you  have  a  man  there  or  were  you  there  yourself  ? 

Mr.  O'RouRKE.  I  don't  think  I  made  two  trips  down  there  the  whole 
season. 

Mr.  Halley.  Did  you  have  a  man  there  ? 

Mr.  O'RouRKE.  Yes. 

Mr.  Halley.  How  many  men  did  you  have  there? 

Mr.  O'RouRKE.  We  hired  some  fellows  around  the  club.  We  had 
some  cabana  boys  and  a  locker-room  boy. 

Mr.  Halley.  Who  did  Erickson  have  there  ? 

Mr.  O'RouRKE.  Erickson  had  a  man  by  the  name  of  Steve  Mauro, 
I  think  his  name  was. 

Mr.  Halley.  How  do  you  spell  Mauro  ? 

Mr.  O'RouRKE.  I  think  he  was  Italian — M-a-u-r-o. 

Mr.  Halley.  Did  you  do  any  business  with  Mickey  Cohen? 

Mr.  O'Roukke.  Yes,  sir. 

Mr.  Halley.  Would  you  describe  the  circumstances? 

Mr.  O'RouRKE.  I  hate  to  tell  you  because  it  was  disastrous,  but  I 
will  tell  you  what  happened.  Mickey  called  me — this  was  before  he 
got  a  lot  of  publicity — I  think  the  records  show,  he  called  me  and  said, 
"Do  you  want  to  take  some  business  ?" 

I  said,  "Who  in  hell  are  you  ?" 

He  said,  "Mickey  Cohen  from  Los  Angeles." 

He  asked  if  he  could  bet  on  some  California  horses  and  I  said,  "No, 
only  Florida,"  and  he  said,  "All  right,"  and  I  said,  "I  will  have  to 
investigate  you." 

I  did,  and  the  only  thing  I  was  interested  in  finding  out  was  finding 
out  if  his  credit  was  fairly  good  and  if  it  was  reliable. 

Mr.  Halley.  Had  vou  lieard  of  him  before  ? 

Mr.  O'RouRKE.  No";  I  hadn't. 

Mr.  Halley.  You  never  heard  of  him  ? 

Mr.  O'RouRKE.  Never. 

Mr.  Halley.  He  called  you  out  of  a  clear  blue  sky  with  no  intro- 
duction ? 

Mr.  O'Rourke.  Yes ;  out  of  a  clear  blue  sky. 

Mr.  Halley.  Did  you  ask  him  how  he  had  heard  of  you  ? 

Mr.  O'RouRKE.  I  didn't  ask  him  that. 

Mr.  Halley.  How  did  he  know  you  were  operating  in  West  Palm 
Beach  ? 

Mr.  O'RouRKE.  I  don't  know  how,  but  news  gets  around  pretty  fast. 

Mr.  Halley.  What  was  the  news  that  got  to  Los  Angeles  about 
you  ? 

Mr.  O'RouRKE.  I  don't  know  how  he  got  it  there. 

Mr.  Halley.  Did  it  strike  you  as  funny  as  it  strikes  me  ? 

Mr.  O'Rourke.  It  strikes  me  as  funny  as  it  does  you,  but  it  hap- 
pened that  I  have  some  relatives  in  California  and  I  called  them  up. 

Mr.  Halley.  Did  they  recommend  him  ? 

Mr.  O'Rourke.  No ;  they  didn't  recommend  him.  He  has  got  a  little 
reputation,  but  he  has  a  reputation  of  paying.  I  said,  "That  is  all 
that  is  necessary  for  me,  I  will  take  a  shot  at  him,  and  I  will  see  if  he 
is  hot  or  if  he  is  cold." 

Several  days  later  he  called  me  and  said,  "If  you  want  some  busi- 
ness I  can  give  you  some  business.  I  want  to  bet  on  some  California 
horses." 


74  ORCANIZED    CRIME    IN    INTERSTATE    COMMERCE 

T  said,  "I  don't  go  for  any  California  horses.  It  is  too  damned 
close  to  the  race  track  for  me." 

He  said,  "I  will  give  yon  some  eastern  horses,"  and  I  said,  "All 
right,"  and  we  did  business,  and  if  I  remember  right,  we  would  settle 
on  maybe  if  I  owed  him  $5,000  or  if  he  owned  me  $5,000,  we  would 
settle  on  tliat  basis.    I  never  did  catch  him. 

Mr.  Halley.  Did  you  place  any  bets  with  him  ? 

]\Ir.  O'RouRKE.  Only  personal  bets ;  maybe  some  times.  I  remember 
one  day  he  hit  me  a  pretty  good  lick,  and  I  grabbed  the  racing  form 
and  tried  to  pick  me  one  to  get  even.  That  was  all  I  did.  I  was  trying 
to  get  out. 

Mr.  Halley.  How^  much  monev  did  you  bet  with  Mickey  Cohen  ? 

Mr.  O'RouRKE.  I  don't  think  I  bet  $1,500.  I  don't  think  I  really 
bet  that  much  with  him  on  my  bets  with  him. 

Mr.  Halley,  On  one  occasion  or  all  together  ? 

]Mr.  O'RouRKE.  I  think  maybe  one  afternoon  I  might  have  either — 
no,  that  was  different  $100-  and  $200-bets.  If  I  remember  right,  I  gave 
liim  very  few  bets. 

Mr.  Halley.  Was  he  betting  his  own  money,  or  laying  off  to  you  ? 

Mr.  O'RouRKE.  That  I  couldn't  say,  but  from  our  conversation,  I 
imagine  he  was  doing  a  little  betting  himself. 

Mr.  Halley.  Did  he  pick  a  great  many  winners  ? 

Mr.  O'RouRKE.  The  checks  will  show  he  did.  I  know  I  cut  him 
off  pretty  damned  quick. 

Mr.  Halley.  You  cut  him  off  ? 

Mr.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  You  ran  almost  a  year  with  him,  didn't  you  ( 

Mr.  O'EouRKE.  No ;  I  don't  think  so. 

Mr.  Halley.  I  have  the  checks  here  starting  in  October  of  lO-tT  and 
running  through  November  1948. 

Mr.  O'RouRKE.  Well,  that  may  be  true,  but  some  of  that  business 
was  some  money  that  I  owed  him  and  stood  him  off  until  I  could 
pay  him. 

^Ir.  Halley.  On  November  27, 1948,  there  are  two  $2,500  checks. 

Mr.  O'RouRKE.  Yes,  sir. 

Mr.  Halley.  Is  that  money  you  had  owed  him  ? 

IMr.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  How  long  can  you  get  along  owing  money  to  Mickey 
Cohen  ? 

Mr.  O'Rourke.  I  don't  know. 

Mr.  Halley.  How  had  you  owed  it  to  him  ?  One  of  these  checks  is 
November  1  and  the  other  one  is  November  15. 

Mr.  O'RouRKE.  That  is  right. 

]Mr.  Halley.  Was  that  paying  a  single  item  for  $5,000? 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Halley.  In  June  of  1948  you  paid  him  $5,000.  That  you  didn't 
owe  him  ^ 

Mr.  O'RoURKE.  I  think  that  was  some  of  the  balance  due.  We 
miglit  have  done  business  for  6  or  7  or  8  months. 

Mr.  Halley.  Right  at  the  start  he  w^on  a  good  deal  of  money  from 
you  in  1947? 

Mr.  O'RouRKE.  That  is  right. 

JMr.  Halley.  And  you  kept  on  doing  business? 


ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE  75 

:\rr.  O'RouRKE.  No ;  I  cut  liim  down.  I  was  trying  to  get  my  money 
back.  Instead  of  taking  maybe  $400  or  $500  on  a  horse,  I  would  take 
$100  or  something  like  that. 

Mr.  Hali.ey.  These  checks  are  for  rather  large  sums  of  money.  Do 
they  represent  the  accumulation  of  a  considerable  number  of  bets? 

Mr.  O'RouRKE.  Yes, 

Mr.  Halley.  They  weren't  big  bets  of  $10,000? 

Mr.  O'RouRKE.  Nothing  like  that.  I  don't  think  his  top  bet  would 
be  over  $300  or  $400 ;  maybe  on  an  even  money  shot  or  a  2  to  1  shot  1 
would  handle  $500. 

Mr.  Halley.  He  would  lose  some  of  them.  He  never  w^on  them 
all,  did  he? 

Mr.  O'Rourke.  Sure,  he'd  lose  some.  I  have  had  him  hooked  be- 
fore and  he  sent  me  a  check. 

Mr.  Halley.  Who  kept  the  arithmetic  on  all  of  these  $100  bets 
back  and  forth  ? 

Mr.  O'Rourke.  We  would  make  a  sheet  on  it  and  send  it  out. 

Mr.  Halley.  Where  are  those  sheets  now? 

Mr.  O'Rourke.  I  don't  know.    They  are  destroyed. 

Mr.  Halley.  Who  destroyed  them  ? 

Mr.  O'Rourke.  After  that  raid  and  all  of  that  up  there,  I  think  a 
lot  of  it  dissipated. 

Mr.  Halley.  Did  you  keep  them  until  the  raid? 

Mr.  O'Rourke.  No;  I  don't  think  so.  After  I  settled  up  on  the 
amounts  and  stuff  and  made  the  checks  out,  I  don't  think  I  kept  any 
of  those  records.    It  w^as  made  on  a  slip  like  that  [indicating]. 

Mr.  Halley.  Before  you  sent  him  a  check,  would  you  call  him  up 
and  say.  "Look  here.    This  is  what  I  owe  you"  ? 

Mr.  O'Rourke.  He  always  called  me. 

Mr.  Halley.  He  would  keep  a  record  and  you  would  keep  a  record  ? 

Mr.  O'Rourke.  That  is  right. 

JNIr.  Halley.  And  then  there  would  be  a  phone  call  ? 

Mr.  O'Rourke.  He  would  call  me.  If  we  bet  today,  tomorrow 
mornino-  or  tomorrow  afternoon  he  would  call  to  see  if  we  checked. 

Mr.  Halley.  Did  you  balance  your  credits  and  your  standing 
practically  every  day  l3y  telephone  ?    He  would  be  calling  every  day  ? 

Mr.  O'Rourke.  That  is  right. 

Mr.  Halley.  Each  day  you  compared  ? 

Mr.  O'Rourke.  Yes.  We  would  put  the  balance  at  the  top  and 
start  another  day. 

Mr.  Halley.  And  you  ripped  up  those  sheets  ? 

Mr.  O'Rourke.  Yes.    We  didn't  keep  them. 

Mr.  Halley.  You  did  a  lot  of  business  in  1948,  didn't  you?  You 
handled  a  lot  of  money  ? 

Mr.  O'Rourke.  I  guess  I  did. 

Mr.  Halley.  Almost  over  $750,000  at  the  Boca  Raton  place  alone? 

Mr.  O'Rourke.  I  don't  know  the  exact  figure  there. 

Mr.  Halley.  Well,  there  was  a  lot  of  money. 

Mr.  O'ROURKE.  They  made  some  good  business.  I  think  they  did 
handle  some  business  there. 

Mr.  Halley.  Some  very  substantial  business  ? 

Mr.  O'Rourke.  Yes,  sir. 


76  ORGAN^IZED   CKIME    IN   mTERSTATE    COMMERCE 

Mr.  Halley.  And  the  records  show  it  to  be  over  $750,000  in  a  3- 
month  season.  You  wouldn't  be  surprised  if  the  records  showed  that, 
would  you  ? 

Mr.  O'RouRKE.  No ;  I  don't  think  so.    I  don't  know  if  it  was  or  not. 

Mr.  Halley.  Do  you  know  whether  it  sounds  reasonable  to  you? 

Suppose  I  told  you  that  between  January  and  April,  a  period  of 
just  3  months,  there  were  gross  receipts  of  at  least$  750,000.  Would 
that  surprise  you  ? 

Mr.  O'RouRKE.  It  might  at  that.  The  only  thing  I  was  keeping  was 
the  winning  and  losing  account. 

Mr.  Halley.  What  would  you  do  ?  Were  you  the  operator  or  did 
Frank  Erickson  come  in  and  check  up  there  on  the  people  who  were 
there  each  day  ? 

Mr.  O'RouRKE.  Frank  had  his  man  and  he  would  check  each  day. 

Mr.  Halley.  You  have  to  watch  people  pretty  carefully  to  see 
that  they  don't  put  their  friends  in  on  some  bets  after  the  race  is  over, 
don't  you  ? 

Mr.  O'RoTJRKE.  I  don't  think  men  of  his  type  would  do  that. 

Mr.  Halley.  Men  of  whose  type  ? 

Mr.  O'RouKKE.  Erickson.    He  is  a  legitimate  bookmaker. 

Mr.  Halley.  Do  you  consider  Erickson  a  legitimate  bookmaker? 

Mr.  O'RouRKE.  He  is  an  honest  man. 

Mr.  Halley.  How  you  mean  "legitimate"  ?  You  don't  mean  that  he 
operates  within  the  law,  do  you  ? 

Mr.  O'RouRKE.  I  don't  think  he  would  take  advantage  of  me  or  you 
or  anybody  else  in  the  business  and  do  an  underhanded  trick  like  that. 

Mr.  Halley.  I  was  talking  about  something  else.  You  have  em- 
ployees operating  at  the  hotel  ? 

Mr.  O'RouRKE.  Yes. 

JNIr.  Halley.  And  they  were  taking  bets  ? 

Mr.  O'RouRKE.  Yes. 

Mr.  Halley.  And  paying  off  for  you  ? 

Mr.  O'Rourke.  Yes. 

Mr.  Halley.  You  are  not  there  every  minute  yourself,  are  you  ? 

Mr.  O'Rourke.  I  was  not  there  at  all. 

Mr.  Halley.  Never? 

Mr.  O'Rourke,  No.  Maybe  once  or  twice  during  the  whole  season, 
but  I  never  did  go  around  the  place. 

Mr.  Halley.  Who  actually  operated  it? 

Mr.  O'Rourke.  Mauro.     Mauro  was  running  it. 

Mr.  Halley.  And  your  part  was  just  furnishing  half  the  capital? 

Mr.  O'Rourke.  Well,  when  we  started  off,  there  was  not  much 
financing  to  do. 

Mr.  Halley.  For  what  reason  did  Erickson  need  you? 

Mr.  O'Rourke.  No  particular  reason.  I  was  around  in  Boca  Raton, 
and  I  was  taking  bets  around  the  locker  house  and  stuff  like  that — 
small  bets— and  then  Schine  approached  me.  That  was  when  I  turned 
the  proposition  down  because  it  looked  like  it  was  too  much  for  me 
to  handle  and  then  the  subject  of  Erickson  came  up. 

Mr.  HATJ.EY.  From  Schine? 

Mr.  O'Rourke.  That  is  right. 

Mr.  Halley.  Then  Mr.  Schine  provided  half  the  capital? 

Mr.  O'Rourke.  Schine  didn't. 


ORGANIZED   CHIME    IN   INTERSTATE    COMMERCE  77 

Mr.  H ALLEY.  I  mean  Erickson. 

Mr.  O'RouRKE.  Erickson  would  stand  good  for  it. 

Mr.  Halley.  Did  you  get  reports  each  day  of  the  operations,  or 
each  week  ? 

Mr.  O'RoTJRKE.  Only  win  and  lose. 

Mr.  Halley.  Each  day? 

Mr.  O'Rourke.  That  is  right. 

Mr.  Halley.  What  did  you  do  with  them  ? 

Mr.  O'Rourke.  I  would  mark  it  down  and  keep  a  record  of  it.  Like 
maybe  a  fellow  would  bring  you  a  check  to  pay  a  bet,  or  I  would  get 
a  check  for  $8,000  or  $9,000  and  I  deposited  it  in  my  account. 

Mr.  Halley.  Who  kept  the  records  for  that  ? 

Mr.  O'Rourke.  Mauro  did. 

Mr.  Halley.  Who  kept  the  bank  roll  for  it  ? 

Mr.  O'Rourke,  Mauro. 

Mr.  Halley.  Who  kept  the  bank  account  for  it  ?  The  commercial 
bank? 

Mr.  O'Rourke.  No.     Only  the  checks  that  came  in,  I  deposited  them. 

Mr.  Halley.  You  would  put  in  all  the  checks  that  were  brought  to 
you  from  Boca  Raton  ? 

]Mr.  O'Rourke,  That  is  right,  in  my  account. 

Mr.  Halley.  Mauro  would  bring  them  to  you  ? 

Mv.  O'Rourke.  That  is  right.  I  would  put  them  through  the  bank 
roll  to  pay  off.     Then  I  would  write  a  check  and  put  it  in. 

Mr.  Halley.  Wliat  accounts  are  you  referring  to? 

Mr.  O'Rourke.  Personal  account. 

Mr.  Halley.  At  the  Atlantic  National  Bank  ? 

l\h\  O'Rourke.  My  bank  account;  my  account. 

]Mr.  Halley.  Was  there  a  lot  of  cash  bet  at  Boca  Raton  ? 

Mr.  O'Rourke.  Considerable. 

Mr.  Halley.  So  that  most  of  the  betting  at  Boca  Raton  was  by 
check  ? 

Mr.  O'Rourke.  Most  of  it  was  by  check. 

Mr.  Halley.  Was  the  pay-off  in  cash  or  by  check? 

Mr,  O'Rourke.  Sometimes  I  wrote  a  check.  Maybe  some  people 
I  would  give  cash,  or  do  it  on  exchange,  like  people  win  today  and  lose 
tomorrow,  or  sometimes  you  carry  a  man  on  account  until  he  check 
out — stuff  like  that,  and  at  the  end  of  the  day  maybe  he  would  be  win- 
ners, but  he  didn't  get  the  money,  but  the  guest  is  still  there,  and 
maybe  he  would  lose  $500  today  or  tomorrow,  and  that  would  go  as 
winnings  to  me.  At  the  end  of  the  season,  when  he  checked  out  after 
a  2  weeks'  stay,  he  may  owe  me  or  I  may  owe  him,  and  whenever  that 
check  came  in,  I  deposited  it. 

Mr.  Halley.  These  checks  went  into  your  account  ? 

Mr.  O'Rourke.  That  is  right. 

Mr.  Halley.  What  work  did  Mauro  have  to  do  ? 

Mr.  O'Rourke,  He  kept  the  winnings  and  losings. 

Mr.  Halley.  Each  day? 

Mr.  O'Rourke.  Yes. 

Mr.  Halley.  What  did  he  do  with  the  winnings  and  losings? 

Mr,  O'Rourke.  Checks  or  anything  he  turned  over  to  me  for  de- 
posit. 

Mr.  Halley.  What  did  he  do  with  those  that  he  would  get  each  day  ? 


78  ORG'AXIZED    CRIME    IN    mTERSTATE    COMMERCE 

Mr.  O'RouRKE.  I  don't  know.  He  gave  me  a  report  at  the  end,  which 
I  mailed  to  New  York. 

Mr.  Halley.  Who  made  the  income  tax  return  for  the  operation  at 
Boca  Raton  ? 

Mr.  O'RouRKE.  For  who  ? 

Mr.  Halley.  The  partnership. 

Mr.  O'RouKKE.  I  didn't  make  any  partnership  return. 

Mr.  Halley.  The  partnership  return  was  made  by  Erickson's 
accountant  ^ 

Mr.  O'RouRKE.  That  is  right,  Later.  I  didn't  know  they  were  going 
to  make  a  partnership  return. 

Mr.  Halley.  Wliere  did  Erickson's  accountant  get  the  figures  ? 

Mr.  O'RouRKE.  From  Mauro,  I  guess. 

Mr.  Halley.  And  he  showed  a  certain  amount  of  profit  and  a  cer- 
tain amount  of  loss  in  that  partnership  return  ? 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Halley.  Wlien  did  you  get  your  share  of  the  profits  ?  How  did 
that  work  ? 

Mr.  O'RouRKE.  The  first  year,  I  believe,  I  owed  them  the  difference 
between  the  deposits  of  the  checks,  if  I  remember  correctly — the  checks 
that  I  deposited  in  the  bank — the  difference  between  that — Erickson 
had  some  coming  and  I  think  I  gave  him  a  check  for  that. 

Mr.  Halley.  I  am  completely  lost  in  this  accounting.  I  don't  even 
begin  to  see  how  you  did  it.     Let's  try  to  work  it  out. 

Let's  say  here  is  a  Boca  Raton  man  comes  in  and  bets  $1,000. 

Mr.  O'RouRKE.  Yes,  sir ;  for  the  day  ? 

Mr.  Halley.  Yes,  and  at  the  end  of  the  day  he  is  loser  by  $900. 

Mr.  O'Rourke.  Yes. 

Mr.  Halley.  He  settles  up  at  the  end  of  the  day ;  is  that  right  ? 

Mr.  O'Rourke.  Not  necessarily. 

Mr.  Halley.  What  happens  to  the  $900  that  the  customer  owes  at 
the  end  of  January — say  January  4,  1948? 

Mr.  O'Rourke.  January  4,  1948,  if  I  remember,  they  carried  this 
this  way,  to  the  best  of  my  recollection :  you  said  that  they  paid  that 
that  day? 

Mr.  Halley.  Yes. 

Mr.  O'Rourke.  You  say  he  lost  $900.  That  Avould  have  been  turned 
in  as  a  winner  for  $900,  because  you  have  to  take  it  as  a  winner  that 
day.  But  the  man  doesn't  pay  but  he  owes  you  $900  and  it  is  an 
account  you  carry  from  day  to  day.  Now,  at  the  end  of  his  time 
there,  or  at  the  end  of  the  season  he  may  win  or  lose — win  two  or  three 
times. 

The  difference  between  his  winnings  and  losses,  if  he  wants  to  settle 
his  account — it  would  probably  be  either  a  check  or  cash  to  him,  or 
check,  whichever  he  wanted.  But  this  winner  is  going  down,  and  tliey 
balance — from  day  to  day. 

Mr.  Halley.  That  is  pretty  complicated  bookkeeping. 

Mr.  O'Rourke.  No,  sir.     It  is  a  record  between  winnings  and  losses. 

Mr.  Halley.  That  is  a  lot  of  figures  that  you  have  to  keep. 

Mr.  O'RoiRKE.  No. 

Mr.  Halley.  You  have  his  winnings  and  losses;  is  that  right? 

Mr.  O'Rourke.  Say  today  he  owes  you  $900  and  tomorrow  he  owes 
you  $400 — that  is  $1,300  he  owes  you. 


ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE  79 

Mr.  Halite Y.  And  then  if  the  customer  wins  the  next  day  $900  or 
$1,000  he  owes  you  only  $300. 

Mr.  O'RouKKE.  We  have  to  win  some  days.  Then  this  brings  it 
back  to  $900,  so  you  lose  $900,  and  if  he  wants  cash  I  give  him  cash, 
or  a  check. 

Mr.  Haeley.  What  happens  if  I  give  you  a  check? 

Mr.  O'RouRKE.  Giveg  me  a  check  ? 

Mr.  Halley.  If  I  gave  a  check  to  Mauro  who  was  running  the  game 
on  the  premises,  what  would  he  do  with  the  check  ? 

Mr.  O'RouRivE.  Give  it  to  me. 

i\Ir.  Halley.  Invariably  ? 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Halley.  And  it  would  go  into  your  account  in  the  Atlantic 
National  Bank  ? 

Mr.  O'RouEKE.  That  is  right. 

Mv.  Halley.  Suppose  Mauro  got  cash  instead  of  a  check? 

Mr.  O'Rourke.  It  would  go  in  the  bank  roll. 

Mr.  Halley.  Would  he  give  you  a  statement  of  what  was  in  the 
bank  roll  at  the  end  of  each  day  ? 

Mr.  O'Rourke.  Not  winners  and  losers.  I  would  know  exactly  how 
much  is  there  because  the  checks  he  gives  me — if  I  can  explain  it.  For 
example,  say  he  gives  me  $5,200  worth  of  checks.  I  deposit  those. 
Then  I  have  up  here  the  winners  and  losers,  say  $500.  All  right. 
That  is  the  winners  and  losers.  Maybe  here  he  is  giving  me  more 
checks  over  here,  so  I  owe  him  money.  At  the  end  of  the  season  there 
will  be  a  balance  here,  which  means  I  deposited  more  checks  in  my 
account  than  I  had  coming. 

Mr.  Halley.  As  your  share  of  the  cut  ? 

]\Ir.  O'Rourke.  If  I  remember  right,  I  give  him  a  check  for  the 
difference. 

Mr.  Halley.  How  much  of  a  check  did  you  give  Mr.  Erickson  ? 

Mr.  O'Rourke.  I  don't  remember.  I  think  it  was  around  $3,000 
or  $4,000. 

Mr.  Halley.  Do  your  deposit  slips  show  which  deposits  came  from 
the  crap  game  and  which  came  from  the  book  and  which  came  from 
Boca  Raton  ? 

Mr.  O'Rourke.  No,  sir. 

Mr.  Halley.  It  is  all  together  in  one  big  unidentifiable  group  ? 

Mr.  O'Rourke.  That  is  right.    It  is  all  run  in  together. 

Mr.  Halley.  On  the  cash  side  of  it,  there  is  no  record  whatsoever 
to  show  where  the  cash  came  from  ? 

Mr.  O'RoiTRKE.  On  what? 

Mr.  Halley.  Where  you  take  your  wins  and  losses  and  put  them 
into  your  bank  roll,  there  is  no  record  to  show  that  the  cash  came 
from  any  particular  transaction  or  not,  is  there  ?  It  is  simply  a  bank 
roll  which  is  large  or  small. 

Mr.  O'Rourke.  No,  sir.    All  that  was  deposited  was  checks. 

Mr.  Halley.  And  there  is  no  way  in  the  world  that  anybody  could 
check  up  to  find  out  whether  the  figure  is  right  or  wrong? 

Mr.  O'Rourke.  No  ;  I  don't  know  that  he  could  or  not.  In  the  book 
we  cash  a  lot  of  local  checks — payroll  checks  and  stuff  like  that  as  an 
accommodation,  and  especially  on  Saturdays  maybe  a  fellow,  after 
banking  hours,  has  to  leave  town  and  has  to  have  some  money  for  a 


80.  ORGANIZED    CRIME    IX    LS'TERSTAT'E    COMMERCE 

ticket  and  stuff  like  that.  As  an  accommodation  we  had  a  check- 
cashing  proposition.  Other  times  we  have  a  lot  more  checks  to  cash 
and  you  have  to  refurnish  the  bank  roll. 

Mr.  Halley.  Do  you  have  a  safe-deposit  box? 

Mr.  O'RouRKE.  Yes,  sir. 

Mr.  Halley.  In  what  bank? 

Mr.  O'RouRKE.  In  the  Atlantic  National  Bank. 

Mr.  Halley.  Any  other  box? 

Mr.  O'RouRKE.  No,  sir. 

Mr.  Halley.  One  box  in  the  Atlantic  National  Bank  ? 

Mr.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  Do  you  own  any  real  estate? 

Mr.  O'Rourke.  I  own  ni}-^  house. 

Mr.  Halley.  Where  is  the  house  ? 

Mr.  O'Rourke.  521  Twenty-eighth  Street. 

Mr.  Halley.  Do  you  own  any  other  businesses  ? 

Mr.  O'Rourke.  No. 

Mr.  Halley.  Or  property? 

Mr.  O'Rourke.  No.  I  am  buying  a  little  piece  of  property  on  a 
contract — a  mango  grove,  and  I  pay  $225  every  quarter. 

Mr.  Halley.  What  is  the  total  cost  of  the  mango  grove  ? 

Mr.  O'Rourke.  I  think  around  $4,000  or  $5,000. 

Mr.  Halley.  In  1948,  your  own  records  show,  you  banked  approxi- 
mately $500,000,  and  that  your  total  income  for  the  year  was  only 
something  like  $1,700. 

Mr.  O'Rourke.  That  is  the  year  I  took  that  beating. 

Mr.  Halley.  Is  that  the  year  you  took  the  beating  from  Mickey 
Cohen  ? 

Mr.  O'Rourke.  Yes,  and  I  think  I  mortgaged  my  stocks  and  bonds 
and  everything  else. 

Mr.  Halley.  Is  that  how  you  account  for  the  sad  situation  in  1948  ? 

Mr.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  What  was  your  net  income  in  1947  ? 

Mr.  O'Rourke.  I  don't  know.     You  must  have  it  there. 

Mr.  Halley.  Did  you  have  any  very  unusual  losses  in  1947,  or  was 
that  a  normal  year  ? 

Mr.  O'Rourke.  1947? 

Mr.  Halley.  Yes. 

Mr.  O'Rourke.  I  don't  know.  I  think  I  had  some  fairly  good 
losses  in  there,  too ;  whatever  the  checks  would  show  there.  On  those 
bank  deposits,  we  cashed  a  lot  of  checks,  naturally,  and  people  there 
would  even  send  up  payrolls  to  cash.  We  did  a  lot  of  cashing  of 
checks,  so  that  runs  your  deposits  up  quite  a  bit. 

Mr.  Halley.  I  don't  understand.  Do  you  mean  that  your  bank 
deposits  in  the  Atlantic  National  Bank  reflect  other  than  your  income 
from  your  business? 

Mr.  O'Rourke.  Those  deposits  are  not  all  income. 

Mr.  Halley.  Then  you  must  have  lost.  I  think  perhaps  the  Gov- 
ernment owes  you  a  lot  of  money,  then,  because  by  your  bank  deposits 
apparently  considering  them  all  as  income,  your  accountant  arrived 
at  a  gross  income  figure.  Is  it  your  position  that  this  gross  income 
figure  is  wrong  ? 

Mr.  O'Rourke.  No. 


ORGANIZED    CRIME    IN    INTERSTATE    C'OMMERCj:  81 

Mr.  Hali.ey.  You  say  you  have  cashed  a  lot  of  checks.  How  many 
checks  would  you  cash  in  a  week,  on  the  average? 

Mr.  O'RotTEKE.  I  have  no  way  of  estimating, 

Mr.  Halley.  a  thousand  ? 

Mr.  O'RouRKE.  Maybe  more  than  that. 

Mr.  Halley.  Two  thousand  ? 

Mr.  O'RouRKE.  Maybe  more  than  that. 

Mr.  Halley.  So  that  if  your  total  deposits  were  $552,000,  would 
you  say  that  it  is  conceivable  that  as  much  as  $100,000  might  repre- 
sent simj^ly  checks  cashed  as  an  accommodation  ? 

Mr.  O'RouRKE.  I  couldn't  tell  you  the  truth  what  it  might  be. 

Mr.  Halley.  Make  an  estimate,  please. 

Mr.  O'RouRKE.  I  don't  know. 

Mr.  Halley.  $50,000? 

Mr.  O'KouRKE.  I  don't  know  exactly.  If  a  man  would  come  to  me 
and  say,  "John,  cash  me  a  $100  check.  I  have  to  catch  a  plane,"  or 
maybe  he  couldn't  get  to  the  bank,  or  maybe  they  would  send  a  nigger 
up  with  a  bunch  of  payroll  checks  because  the  banks  are  all  closed.  I 
would  cash  them  for  him.     That  is  an  accommodation. 

The  Chairman.  The  question  is:  Are  those  checks  listed? 

Mr.  O'RouRKE.  Yes,  sir.     They  are  all  in  there. 

Mr.  Halley.  Would  vou  say  in  a  single  year  they  would  total  at 
least  $10,000? 

Mr.  O'RouRKE.  They  would  run  much  more  than  that. 

Mr.  Halley.  At  least  $50,000  ? 

Mr.  O'RouRKE.  I  imagine  more  than  that. 

Mr.  Halley.  $100,000? 

Mr.  O'RouRKE.  I  can't  estimate  that. 

Mr.  Halley.  They  run  at  least  $50,000  ? 

Mr.  O'RouRKE.  I  imagine  they  would. 

Mr.  Halley.  In  any  given  year  when  you  were  operating;  is  that 
right? 

Mr.  O'RouRKE.  Yes,  sir. 

Mr.  Halley.  And  $50,000  would  be  a  low  figure  rather  than  a  high 
figure  ? 

Mr.  O'RouRKE.  I  don't  know  that.     That  is  just 

The  Chairman.  Those  are  checks  that  had  nothing  to  do  with  bet- 
ting? 

jNIr.  O'RouRKE.  That  is  right.  Of  course  it  doesn't  mean  they  were 
all  accommodation  propositions.  Senator,  but  there  were  a  lot  of 
them  that  way.  There  were  very  few  checks  I  would  take  on  bets, 
unless  it  was  from  out  of  town  and  most  all  of  them  were  personal 
checks ;  people  I  know  around  town  there. 

Mr.  Halley.  Would  you  have  for  your  crap  game  and  your 

Mr.  O'RouRKE.  I  cashed  for  a  lot  of  people  checks — unemployment 
checks  from  the  Government,  that  they  didn't  have  bank  accounts, 
and  some  of  the  banks  would  charge  them  25  cents  and  things  like 
that.     If  you  know  them,  you  cash  it  for  them. 

Mr.  Halley.  Did  you  charge  for  cashing  checks  ? 

Mr.  O'RouRKE.  No. 

Mr.  Halley.  Even  payroll  checks  ? 

Mr.  O'RouRKE.  No. 

Mr.  Halley.  No  charge  ever  ? 

Mr.  O'Rourke.  No,  sir. 


82  ORGAJSriZED   CRIME    IN   INTERSTAT'E    CO]\IMERCE 

Mr.  Halley.  You  have  a  bank  roll,  do  you  not,  when  you  operate 
your  games  ? 

Mr.  O'RouKKE.  Yes. 

Mr.  Halley.  Do  you  make  it  a  practice  of  keeping  a  certain  amount 
of  money  in  the  bank  roll  ? 

Mr.  O'RouRKE.  We  try  to  keep  it  around  $5,000.  It  varies  from 
$2,500  up  to  $7,500,  and  with  the  action  back  and  forth,  checks  would 
go  back  and  forth. 

Mr.  Halley.  When  the  bankroll  went  down,  you  would  draw  checks 
from  the  bank? 

Mr.  O'Rourke.  That  is  right. 

Mr.  Halley.  Cash  a  check  and  take  the  cash  and  use  that  for  your 
bankroll  ? 

Mr.  O'Rourke.  Yes,  sir. 

Mr.  Halley.  And  what  record  did  you  keep  of  the  use  to  which 
you  put  the  cash  withdrawn  from  the  bank  and  put  in  the  bankroll? 
Do  you  keep  a  book  showing  disbursements  out  of  the  bankroll  ? 

Mr.  O'Rourke.  No  disbursements  outside  of  the  bets  would  be  made 
by  the  bankroll. 

Mr.  Halley.  You  kept  betting  sheets  ? 

Mr.  O'Rourke.  No;  just  a  ticket;  just  a  pad  like  that — maybe  2  or 
3  inches  wide  and  maybe  4  inches  long. 

Mr.  Halley.  What  did  you  do  with  those  sheets  after  you  paid  the 
bettor  or  took  his  money? 

Mr.  O'Rourke.  We  kept  them  in  the  cashier's,  in  a  drawer  with  the 
winners  and  losers. 

Mr.  Halley.  Where  is  the  sheet  now  ? 

Mr.  O'Rourke.  I  don't  know. 

Mr.  Halley.  What  happened  to  them? 

Mr.  O'Rourke.  Destroyed  them. 

Mr.  Halley.  Did  you  destroy  them? 

Mr.  O'Rourke.  They  were  put  out  a  long  time  ago.  All  I  kept  up 
there  one  time — I  kept  those  sheets  for  6  or  7  years  and  it  was  in  the 
old  post  office.  I  had  a  truckloacl  of  them.  I  kept  them  up  because  they 
are  not  in  any  form.  They  are  not  tied  together.  They  are  plain 
pieces  of  paper  w^ith  a  rubber  band  around  them,  and  when  we  changed 
location,  nobody  ever  came  in  to  look  around  or  anything  so  I  just 
told  the  boys  to  carry  them  out  and  throw  them  in  the  incinerator 
because  there  was  a  stack  as  high  as  from  here  to  there. 

Mr.  Halley.  You  have  none  any  more? 

Mr.  O'Rourke.  Not  any  more. 

Mr.  Halley.  Wlien  you  had  your  accountant  work  up  your  figures 
for  each  year,  did  you  give  him  those  sheets  for  the  year  ? 

Mr.  O'Rourke.  No. 

Mr.  Halley.  Why  not? 

Mr.  O'Rourke.  He  didn't  ask  for  them. 

Mr.  Halley.  Did  you  tell  him  there  were  such  sheets  ? 

Mr.  O'Rourke.  I  was  always  told  to  deposit  all  checks  I  received; 
don't  cash  any  checks  for  cash ;  put  them  all  in  and  if  I  needed  to  re- 
plenish the  bankroll,  take  it. 

Mr.  Halley.  You  didn't  deposit  the  cash  you  received? 

Mr.  O'Rourke.  Tlie  cash?     I  think  those  checks  the  cashier  cashed. 

Mr.  Halley.  When  you  would  win  a  cash  bet.  that  cash  went  into 
the  cash  bankroll  ? 


ORGAXIZED   CR'IME    IN   INTERSTATE    COMMERCE  83 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Hallp:y.  And  it  was  not  deposited  in  the  bank? 

Mr.  ORouRKE.  No ;  these  checks  were  all  cashed. 

Mr.  Hallf.y.  You  kept  no  cash  book  showing  receipts  of  cash  ? 

Mr.  O'RouRKE.  No. 

Mr.  Halley.  I  have  no  further  questions. 

The  Chairman.  I  have  one  or  two  questions.  Do  you  want  to  ask 
some  now.  Senator  Hunt? 

Senator  Hunt.  No,  sir. 

The  Chairman.  Mr.  O'Rourke,  this  Mr.  Schine  that  you  talked  to, 
is  he  the  one  that  owns  the  McAllister  Hotel  here  in  Miami  ? 

Mr.  O'Rourke.  I  don't  know  if  he  owns  the  McAllister.  I  under- 
stand he  owns  the  Roney. 

The  Chairman.  How  long  had  you  known  Mr.  Schine  when  he 
called  you  to  come  to  see  him? 

Mr.  O'RouRKE.  I  had  never  met  him. 

The  Chairman.  Did  you  ever  meet  Mickey  Cohen  ? 

Mr.  O'RouRKE.  Never  seen  him  in  my  life. 

The  Chairman.  What  was  your  first  transaction  with  Mickey 
Cohen  ? 

Mr.  O'RouRKE.  How  it  came  about? 

The  Chairman.  Yes. 

Mr.  O'RouRKE.  Just  repeating,  he  called  me  one  day  on  the  phone 
and  asked  me  if  I  wanted  some  business,  and  I  told  him  I  would  never 
turn  down  any  business. 

The  Chairman.  Do  you  know  how  he  got  your  name  ? 

Mr.  O'RouRKE.  No ;  I  can't  tell  you  that. 

The  Chairman.  Assuming  that  Mickey  Cohen  would  call  and  want 
to  place  a  bet,  how  long  would  that  be  before  the  race  would  take 
place? 

Mr.  O'RouRKE.  Probably  anywhere  from  5  to  20  minutes. 

The  Chairman.  That  would  be  on  some  race  at  Hialeah  or  Tropical 
Park  out  here  ? 

Mr.  O'RouRKE.  I  don't  know  if  he  bet  much  on  any  Florida  races. 
I  think  it  was  more  the  eastern  tracks.  I  don't  know  because  Florida 
was  running  most  of  the  time. 

The  Chairman.  Anyway,  you  would  take  a  bet  on  any  track  he 
wanted  to  place  it  on? 

Mr.  O'RouRKE.  Not  on  California. 

The  Chairman.  Was  the  pay-off  on  the  basis  of  the  pari-mutuel 
pay? 

Mr.  O'RouRKE.  Yes,  sir. 

The  Chairman.  That  is  the  way  you  figured  it? 

Mr.  O'RouRKE.  Yes,  sir. 

The  Chairman.  You  referred  to  the  partnership  that  you  had  with 
Erickson  at  Boca  Raton.  When  did  you  first  start  doing  business 
with  Mr.  Erickson  ? 

Mr.  O'RouRKE.  If  I  remember  right,  I  did  business  with  him  2 
years.    It  must  have  been  '47  and  '48. 

The  Chairman.  Did  he  have  any  interest  in  your  dice  game  that 
you  had  in  West  Palm  Beach? 

Mr.  O'RouRKE.  No  interest  whatever  in  anything. 

The  Chairman.  The  only  connection  you  had  with  Mr.  Erickson, 
according  to  your  testimony,  was  at  Boca  Raton? 


84  ORGAN^IZED    CRIME    IN    IIS^ERSTATE    COMMERCE 

Mr.  O'RouRKE.  That  is  absolutely  right. 

The  Chairman.  Wlieii  was  the  hrst  you  knew  he  had  made  out  a 
partnership  income  tax  return  ? 

Mr.  O'RouRKE.  It  was  some  time  during  the  summer,  after  he  left 
herQ.  He  sent  me  a  copy  of  the  partnership  return  that  had  been 
turned  in  and  I  think,  if  I  remember  right — — 

The  Chairman.  Did  you  have  that  when  Mr.  Hart  made  out  your 
personal  income  tax  return? 

Mr.  O'RouRKE.  No,  sir,  it  came  later. 

The  Chairman.  You  turned  that  over  to  Mr.  Hart,  did  you? 

Mr.  O'RouRKE,  Yes,  sir. 

The  Chairman.  Later  on? 

Mr.  O'KouRKE.  Yes,  sir. 

The  Chairman.  Did  you  use  a  separate  bankroll  for  the  operations 
at  Boca  Eaton  and  also  for  your  crap  game  ? 

Mr.  O'RouRKE.  You  mean  as  cash? 

The  Chairman.  Yes. 

Mr.  O'RouRKE.  Yes,  sir,  it  was  separate  cash. 

The  Chairman.  The  two  businesses  were  not  interlocked  insofar 
as  the  personnel  of  the  operation  were  concerned,  except  yourself? 

Mr.  O'RouRKE.  No.    We  had  diiferent  personnel  down  there. 

The  Chairman.  You  took  checks  or  profits  from  both  operations 
and  put  them  in  the  same  bank  account  ? 

Mr.  O'RouRKE.  Yes,  sir. 

The  Chairman.  JNIr.  O'Rourke,  how  do  you  pay  off  for  protection 
for  your  operations  ? 

Mr.  O'RouRKE.  I  don't  know  there  was  any  protection. 

The  Chairman.  You  can't  operate  a  place  like  that  in  violation 
of  the  law  unless  somebody  knows  about  it.    Who  did  you  pay  off? 

Mr.  O'EouRKE.  I  didn't  pay  anybody  off. 

The  Chairman.  Mr.  O'Roiirke 

]Mr.  O'RouRitE.  I  have  friends  in  politics.  I  have  been  in  Florida 
ever  since  1919. 

The  Chairman.  Mj  question  was :  Who  did  you  pay  off  for  your 
protection  in  Palm  Beach? 

Mr.  O'RouRKE.  As  far  as  protection.  I  may  give  a  little  for  cam- 
paigns and  stuff  like  that,  but  that  is  all. 

The  Chairman.  How  much  for  campaigns,  sa}',  in  1948? 

Mr.  O'RoTJRKE.  1948  ?  I  don't  think  it  would  run  inuch  in  an  elec- 
tion.   I  don't  remember  of  any  election  in  1948. 

The  Chairman.  The  sheriff's  election? 

Mr.  O'RouRKE.  No,  it  doesn't  make  any  difference,  sheriff  or  any- 
body come  along — ^maybe  $100  or  $150  or  something  like  that.  It 
is  a  donation. 

The  Chairman.  In  cash? 

Mr.  O'RouRKE.  Sometimes  it  takes  care  of  a  little  advertising  in 
maybe  the  newspapers  or  something  like  that. 

The  CHAiR:i\rAN.  Cash  ? 

Mr,  O'RouRKE.  Not  to  them,  workers  and  things  like  that. 

The  Chairman.  Was  it  cash  that  you  paid  out  ? 

Mr.  O'RouRKE.  Oh,  yes;  a  little  out  of  my  pocket. 

The  Chairman.  Out  of  the  bank  roll  ? 

Mr.  O'RouRKE.  No,  sir;  mostly  out  of  my  pocket. 


ORGANIZED    CRIME    IN    INTERSTATE    COMIVIERCE  85 

The  Chairman.  You  didn't  give  any  checks? 
Mr.  O'RouRKE.  No,  sir. 

The  Chairman.  How  much  would  your  contributions  for  ad  vert  is- 
ino;  or  wliat  not  be  in  the  year,  say,  1948? 

Mr.  O'RouRKE.  I  don't  think,  Senator,  honestly  that  it  would  run 
very  much ;  maybe  $1,500  or  $2,000  for  different  things. 

A  lot  of  times  they  come  around  and  tell  you  they  have  a  little  pro- 
gram and  things  like  that  and  you  do  favors  for  them  like  that. 

The  Chairman.  Mr.  O'Rourke,  my  question  to  you  was:  Who  did 
you  make  these  payments  to  ? 

]Mr.  O'RouRKE.  Senator 

The  Chairman.  Did  you  make  a  payment  to  the  sheriff  or  to  some- 
body on  behalf  of  the  sheriff? 

Mr,  O'RouRKE.  No,  sir ;  never  had  an  agent,  never  paid  an  agent. 

The  Chairman.  How  about  the  sheriffs 

yiv.  O'RouRKE.  I  didn't  pay  no  sheriff. 

The  Chairman.  You  didn't  pay,  but  just  a  little  contribution — a 
small  amount? 

Mr.  O'RouRKE.  At  election  time  I  would  help  out  in  my  way,  get 
out  and  work  and  do  things  like  that. 

The  Chairman.  Now  about  the  money? 

Mr.  O'RouRKE.  Very  little  donations  on  that  end  of  it.  I  may  have 
given  a  little  money. 

The  Chairman.  To  the  sheriff's  committee? 

Mr.  O'RoLRKE.  No,  the  Democratic  committee,  the  executive  com- 
mittee organization — things  like  that,  or  campaigns  like  that. 

The  Chairman.  Did  you  make  any  record  of  what  you  gave  ? 

Mr.  O'RouRKE.  No ;  I  did  not  on  personal  donations. 

The  Chairman.  Your  dice  game  was  wide  open  for  anybody  to  come 
in  to,  wasn't  it  ? 

Mr.  O'RouRKE.  Yes,  sir. 

The  Chairman.  How  long  did  you  operate  that  ? 

Mr.  O'RouRKE.  I  don't  know,  maybe  3  or  4  years. 

The  Chairman.  Did  you  ever  get  raided  until  you  were  closed  up 
finally? 

Mr.  O'RouRKE.  No,  sir. 

The  Chairman.  For  being  in  violation  of  the  law  ? 

Mr.  O'RouRKE.  No,  sir. 

The  Chairman.  Who  did  you  talk  to  about  not  closing  you  up  ? 

Mr.  O'RouRKE.  I  didn't  talk  to  anyone  in  particular. 

The  Chairman.  I  know,  but  who  in  general?  Who  did  you  talk 
with  in  general  or  in  particular  about  giving  you  protection  so  you 
wouldn't  be  closed  up  ? 

]Mr.  O'RouRKE.  I  don't  think,  Senator,  that  that  atmosphere  was  to 
anyone's  discredit.     It  was  more  or  less  of  a  liberal  community. 

The  Chairman.  Mr.  O'Rourke,  you  don't  just  operate  a  dice  game 
•wide  open  in  a  town  in  violation  of  the  law  for  3  or  4  years  unless  you 
have  some  understanding  about  it.  Who  was  it  that'  you  talked  with 
in  general  or  in  particular  ? 

Mr.  O'RouRKE.  I  don't  remember  talking  to  anybody  in  general  or 
particular  about  it. 

The  Chairman.  Did  you  talk  to  anybody  about  it  ? 

Mr.  O'Rourke.  There  was  a  boy  when  I  went  into  the  dice  game. 
He  run  a  dice  game  and  I  went  in  bank  roll  with  him. 


86  ORG'ATSriZED    CRIIVIE    IN    ESTTERSTATE    COMMERCE 

The  Chairman.  Wliat  has  that  to  do  with  whom  you  talked? 
About  using  the  bank  roll  with  somebody  else  ? 

Mr.  O'RouRKE.  I  don't  know. 

The  Chairman.  Mr.  O'Rourke,  I  am  afraid  you  are  not  answering 
the  committee  very  fairly.  It  is  our  job  to  find  out  just  how  opera- 
tions like  yours  operate  without  being  closed  up  and  what  influence 
with  the  local  enforcement  officers  there  is.  How  did  you  get  by  all 
of  this  time  without  being  closed  up  ? 

Mr.  O'RouRKE.  I  think  more  or  less  the  reason  I  got  by  was  being 
local,  being  around  the  town  for  years,  and  in  business  there  for 
many  years. 

The  Chairman.  Wlio  was  your  sheriff  in  1948  ? 

Mr.  O'RouRKE.  The  same  one  as  now. 

The  Chairman.  What  is  his  name  ? 

Mr.  O'RouRKE.  Kirk. 

The  Chairman.  K-i-r-k? 

Mr.  O'RouRKE.  Yes,  sir. 

The  Chairman.  Do  you  know  him? 

Mr.  O'RouRKE.  Yes,  sir. 

The  CocAiRMAN.  Did  you  contribute  to  his  campaign  ? 

Mr,  O'RouRKE.  I  went  out  and  worked  for  him  as  much  as  I  could. 

The  Chairman.  Did  you  contribute  to  his  campaign? 

Mr.  O'RouRKE.  A  little  on  the  side ;  not  directly  to  him.  . 

The  Chairman.  How  did  you  contribute  ? 

Mr.  O'RouRKE.  I  don't  think  I  put  in  $500  in  it. 

The  Chairman.  Do  you  think  you  put  in  $500  ? 

Mr.  O'RouRKE.  I  might  have  around  a  few  different  spots. 

The  Chairman.  To  whom  did  you  give  it  ? 

Mr.  O'RouRKE.  Hired  a  workers'  group  and  give  them  maybe  $10 
to  talk  or  maybe  place  cards. 

The  Chairman.  Who  did  you  give  the  big  sums  to  ? 

Mr.  O'RouRKE.  Not  in  his  election  I  didn't  give  no  big  sums. 

The  Chairman.  Did  you  have  a  talk  with  the  sheriff  before  the 
campaign  about  the  fact  that  you  were  going  to  help  him  ? 

Mr.  O'RouRKE.  No,  sir;  I  did  not.  In  fact,  the  sheriff  was  an  old 
ex-ballplayer  and  I  played  ball  with  him  for  years,  and  the  first  time 
he  ran,  I  was  against  him  and  this  time  I  was  for  him. 

The  Chairman.  You  don't  think  all  this  work  and  this  $500  that  you 
put  in  the  sheriff's  campaign  had  anything  to  do  with  your  staying 
in  business? 

Mr.  O'RouRKE.  No ;  I  don't.  I  think  if  he  had  a  complaint  or  war- 
rant or  anything  else  he  would  have  taken  legal  action. 

The  Chairman.  Who  was  tlie  mayor  of  West  Palm  Beach  in  1918  ? 

Mr.  O'RouRKE.  I  don't  know  who  it  was  in  1918. 

The  Chairman.  Who  is  the  mayor  now  ? 

Mr.  O'RouRKE.  Mr.  Keating.     I  don't  even  know  him. 

The  Chairman.  When  did  he  come  in  ? 

Mr.  O'RouRKE.  He  came  in  about  2  weeks  ago. 

The  Chairman.  Who  was  the  mayor  just  before  he  came  in  office? 

Mr.  O'RouRKE.  The  mayor  was  a  man  by  the  name  of  Holland. 
I  don't  even  know  him.     I  met  him  one  time. 

The  Chairman.  Who  is  the  head  of  the  police  department  in  West 
Palm  Beach? 

Mr.  O'RouRKE.  Matthews. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  87 

The  Chairman.  How  long  has  he  been  there? 

Mr.  O'RouRKE.  I  think  he  has  been  in  a  little  over  2  years,  if  I 
remember  right. 

The  Chairman.  Do  you  know  him? 

Ml-.  O'KouRKE.  Not  very  intimately.  I  know  his  family  and  I  knew 
his  old  dad  very  well,  but  this  young  boy — I  don't  know  him. 

The  Chairman.  How  was  he  selected  ? 

Mr.  O'EouRKE.  He  is  elected  by  the  people. 

The  Chairman.  Did  you  help  him  in  his  campaign? 

Mr.  O'RouRKE.  No. 

The  Chairman.  You  didn't  have  any  workers  out  for  him  ? 

Mr.  O'RouRKE.  No,  sir.     In  fact,  I  was  then  for  the  man  he  beat. 

Senator  Hunt.  Mr.  Hart  made  your  personal  income-tax  return 
and  then  later  you  received  the  partnership  return  from  Mr.  Erick- 
son  and  you  handed  that  to  Mr.  Hart.  Did  you  make  a  supplementary 
personal  tax  return  showing  some  $34,000  of  your  profits  from  your 
partnership  ? 

Mr.  O'RouRKE.  No,  sir;  I  didn't. 

Senator  Hunt.  You  didn't  do  that  ? 

Mr.  O'RouRKE.  No,  sir.  It  was  included  in  the  whole  blanket  thing. 
I  don't  know"  why  Mr.  Hart  didn't.  I  turned  it  over  to  him.  It  was 
a  complicated  affair. 

Senatoi-  Hunt.  Has  anything  been  said  about  not  doing  it? 

]Mr.  O'RouRKE.  They  have  not. 

Senator  Hunt.  They  probably  will,  don't  you  suppose  ? 

Mr.  O'RouRKE.  Yes,  sir ;  I  believe  they  will. 

Senator  Hunt.  Why  don't  you  beat  them  to  it  and  attend  to  it 
and  save  yourself  a  penalty  ? 

Mr.  O'RouRKE.  I  have  intended  to  do  that,  and  I  expect  I  will  do 
it.  After  he  filed  that,  if  I  recollect,  I  think  Mr.  Hart  said,  "Maybe 
we'll  be  penalized  by  it."  He  filed  the  report  and  sent  it  in  later  after 
we  filed  our  report. 

Senator  Hunt.  Didn't  you  know  that  you  had  those  earnings? 

Mr.  O'RouRKE.  It  was  in  my  original  report. 

Senator  Hunt.  In  your  personal  return? 

Mr.  O'RouRKE.  Yes,  sir ;  in  the  blanket  report. 

Mr.  Halley.  You  have  just  contradicted  yourself.  First  you  said 
it  was  not  included  and  then  you  said  it  was  included. 

Mr.  O'RouRKE.  I  don't  mean  it  was  not  included.  What  I  say  is — I 
put  mine  all  together  in  one  report.  I  didn't  itemize  it  separately  as  a 
partnership. 

Mr.  Halley,  As  I  remember,  your  return  is  not  in  accordance  with 
the  facts. 

The  Chairman.  I  want  to  ask  this  question,  Mr.  O'Rourke :  Were 
you  asked  with  whom  you  laid  off  bets? 

Mr.  O'Rourke.  Yes;  I  believe  I  was. 

The  Chairman.  How  do  you  know  the  people  who  you  can  lay  off 
bets  with? 

Mr.  O'Rourke.  I  don't  think — I  haven't  laid  many  bets  off. 

The  Chairman.  When  j'ou  want  to  lay  bets  off,  how  do  you  know 
who  to  get  in  touch  with? 

Mr.  O'Rourke.  For  the  last  several  years,  I  knew  them  by  acquaint- 
ance. 

68958— 50— pt.  1 7 


88  ORGANIZED    CEIME    IN    INTERSTATE    COMMERCE 

The  Chairman.  Where  ^vould  you  meet  them? 

Mr,  O'RouRKE.  Men  who  have  been  in  the  bookmaking  business  for 
years. 

The  Cir AIRMAN.  You  laid  off  bets  with  Erickson? 

Mr.  O'EouRKE.  No,  sir;  not  a  bet.  The  only  transaction  with  Mr. 
Erickson  was  on  the  deal  I  have  mentioned. 

The  Chairman.  Who  did  you  lay  off  with  in  New  York  or  Chicago  ? 

Mr.  O'EouRKE.  Not  in  New  York  or  Chicago. 

The  Chairman.  You  got  this  man  down  here  in  Miami  that  you 
can  lay  bets  off  with  ? 

Mr.  O'RouRKE.  I  did  for  a  while  lay  off  a  few  bets  to  Dick  Evans. 

The  Chairman.  You  must  have  some  understanding  between  you 
fellows  about  who  will  take  a  lay-off  bet.  How  do  you  get  that 
information  ? 

Mr.  O'RouRKE.  You  get  to  know  the  fellows  that  are  in  town  here. 
I  have  never  laid  any  bets  out  of  the  State.  In  fact,  there  are  three  or 
four  bookmakers  around  there  in  West  Palm  Beach  and  we  do  busi- 
ness with  one  another  and  naturally  we  did  a  little  business  with  some 
of  the  Miami  boys  locally  around  here  that  are  close  by,  and  that 
comes  from  association. 

Take  football.  If  I  need  a  couple  of  Orange  Bowl  tickets.  I  call  one 
of  them  and  get  some  tickets  for  a  friend  and  things  like  that,  but  I 
never  laid  off'  many  bets.  I  think  Dick  Evans  is  the  man  I  laid  bets 
off  with.    It  is  too  hard  to  do  that. 

The  Chairman.  You  read  in  the  papers  where  Mr.  Erickson's  books 
were  secured  in  New  York? 

Mr.  O'RouRKE.  Yes,  sir. 

The  Chairman.  Have  you  talked  with  him  since  that  time? 

Mr.  ORouRKE.  Only  to  say  "Hello.'* 

The  Chairman.  Where  was  he  when  you  said  "Hello"  ? 

Mr.  O'RouRKE.  I  only  ran  into  him  by  accident,  not  by  engagement, 
prearranged  or  anything.  I  went  to  New  York  before  1  ever  knew 
his  name  was  in  the  papers.  I  went  up  there  to  see  a  friend  of  mine 
and  ran  into  him  in  the  barber  shop. 

The  Chairman.  Just  accidentally? 

]Mr.  O'RouRKE.  Yes.  No  prearranged  meeting  at  all.  That  was 
after  he  testified  at  Washington. 

The  Chairman.  Did  you  see  him  after  you  ran  into  him  at  the 
barber  shop? 

Mr.  O'RouRKE.  OnW  a  few  minutes,  after  he  got  through  shaving 
and  a  haircut. 

llie  Chairman.  Did  you  transact  any  business? 

Mr.  O'RouRKE.  Not  a  single  thing.  The  only  thing  I  remember 
referring  to  business  was — I  just  asked  him  how  he  was  feeling  and 
he  said  it  was  getting  tough. 

The  Chairman.  Did  you  see  Frank  Costello? 

]Mr.  O'RouRiiE.  I  don't  know  Frank  Costello,  only  by  his  pictures 
in  the  paper.    I  never  met  him  in  my  life. 

Tlie  Chairman.  Did  you  see  Joe  Adonis  when  you  were  up  there? 

Mr.  O'RouRKE.  I  didn't  talk  to  Joe  Adonis.  I  saw  him  in  Dinty 
Moore's  Restaurant.    I  had  no  business  with  liim.    I  know  him  by  sight. 

Mr.  Hai,ley.  When  did  you  go  to  New  York? 

Mr.  O'RouRKK.  Wednesday  two  weeks  ago  or  Tuesday  a  week  ago.- 

Mr.  Halley.  When  did  you  return  to  West  Palm  Beach? 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  89 

Mr.  O'RouRKE.  I  think  I  <rot  in  here  Saturday. 

Mr.  Halley.  Just  a  ^Yeek  ago  today  ? 

]\Ir.  O'RouRKE.    I  think  that  was  it.     I  am  pretty  sure  it  was  a. 
week  ago  today. 

Mr.  Halley.  How  long  were  you  in  New  York  ? 

Mr.  O'RouRKE.  I  stayed  in  New  York  one  day  and  one  night,  and  L 
left  the  next  day. 

Mr.  Halley,  Did  you  go  any  place  before  New  York? 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Halley.  You  stayed  a  day  and  a  night  and  you  returned  here? 

Mr.  O'RouRKE.  That  'is  right. 

Mr.  Halli:y,  What  hotel  did  you  stay  in  ? 

Mr.  O'RouRKE.  Waldorf. 

Mr.  Halley.  In  what  barber  sliop  did  you  meet  Mr.  Erickson? 

]Mr.  O'RouRKE.  In  the  Waldorf. 

:Mr.  Halley.  What  day  was  that  ? 

]SIr.  O'RouRKE.  That  was  the  morning  after  I  got  in.  I  think  it 
was  on  a  Wednesday. 

Mr.  Halley.  You  just  hapjjened  to  bump  into  Erickson  in  the 
Wfddorf  Barber  Shop  ? 

Mr.  O'RouRKE.  That  is  right. 

Mr.  Halley.  Did  you  see  him  or  did  he  see  you  ? 

Mr.  O'RouRKE.  i  didn't  know  he  was  in  there.  He  was  in  the 
barber  chair. 

Mr.  Halley.  Did  he  recognize  you  and  call  you  over  ? 

Mr.  O'RouRKE.  No,  sir. 

Mr.  Halley.  Did  you  see  him  in  the  barber  shop  ? 

Mr.  O'Rourke.  Yes. 

Mr.  Halley.  And  you  walked  over  to  him  ? 

Mr.  O'Rourke.  That  is  right. 

Mr.  Halley.  That  is  all. 

The  Chairman.  Did  you  ever  talk  with  him  on  the  telephone  since 
then  ? 

Mr.  O'Rourke.  No,  sir ;  not  since  then. 

The  Chairman.  Is  there  anything  else,  Mr.  Halley  ? 

]\lr.  Halley.  That  is  all.    Thank  you. 

The  Chairman.  Thank  you,  Mr.  O'Rourke. 

Tlie  committee  will  recess  until  2  o'clock. 

(Wliereupon,  at  12:45  p.  m.  a  recess  was  taken  to  reconvene  at 
2  p.  m.) 

afternoon  session 
The  Chairman.  The  hearing  will  be  resumed. 
FURTHER  TESTIMONY  OF  ABE  ALLENBERG,  MIAMI  BEACH,  FLA. 

The  Chairman.  Mr.  Allenberg,  you  were  sworn  yesterday,  were 
you  not  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Have  you  responded  to  the  subpena  duces  tecum  that 
was  served  upon  you  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  you  have  furnished  certain  records  to  this  com- 
mittee? 

Mr.  Allenberg.  Yes,  sir. 


90  ORGANIZED    CRIME    IX    INTERSTATE    COMMERCE 

Mr.  Halle Y.  Do  you  want  to  identify  the  records  that  you  have 
produced  ? 

What  are  these  documents  I  have  here  ? 

Mr.  Allenberg.  Those  are  income-tax  returns. 

Mr.  Hallet.  For  what  years  ? 

Mr.  Allenberg.  For  many  years  back. 

Mr.  Hallet.  They  run  up  to  1949  ? 

Mr.  Allenberg.  I  think  1946,  1947,  1948,  and  1949  are  in  the  hands 
of  Mannie  Kramer,  who  is  an  accountant. 

Mr,  Hallet.  In  the  hand.s  of  Mannie  Kramer,  who  is  an  accountant  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Hallet.  And  these  are  the  ones  for  prior  years;  is  that  right? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Hallet.  I  offer  in  evidence  these  documents  as  exhibit  No.  40 
the  income  tax  file  from  194:2  to  1944  for  Abe  Allenberg,  which  file 
also  contains  letters  from  Andy  Pellino  on  the  stationery  of  Henry 
Pellino,  a  certified  public  accountant  of  New  York  City,  discussing 
Allenberg's  taxes  in  connection  with  those  of  Frank  Erickson. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

( Exhibit  No.  40,  income  tax  returns  and  papers  relating  thereto  are 
on  file  with  committee ;  letters  from  Pellino  appear  in  the  appendix 
on  p.  731.) 

Mr.  Hallet.  And  you  have  an  envelope  of  miscellaneous  papers 
referring  to  the  Wofford  Hotel  i 

Mr.  Allenberg.  Yes,  sir;  miscellaneous  papers  referring  to  the 
Wofford  Hotel. 

Mr,  Hallet.  I  offer  in  evidence  a  folder  of  miscellaneous  papers 
referring  to  the  Wofford  Hotel  as  exhibit  No.  41. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Folder  of  miscellaneous  papers  re  Wofford  Hotel  received  in  evi- 
dence as  exhibit  No,  41  on  file  with  committee.) 

Mr.  Hallet.  Here  is  another  batch  of  miscellaneous  papers  con- 
cerning Tropical  Park  and  Gables  Racing  Association. 

The  Chairman,  Let  these  miscellaneous  papers  in  the  brown  enve- 
lope be  filed  and  made  a  part  of  the  record  as  exhibit  No.  42. 

(Miscellaneous  papers  re  Tropical  Park  and  Cables  Racing  Asso- 
ciation received  in  evidence  as  exhibit  No.  42  on  file  with  connnittee.) 

Mr.  Hallet.  When  did  you  first  come  to  Miami  ? 

Mr,  Allenberg.  1935. 

Mr.  Hallet.  Will  you  state  the  circumstances  ^ 

Mr.  Allenberg.  I  came  down  here  representing  Frank  Erickson 
in  the  purchase  of  an  interest. in  the  Gables  Racing  Association.  Ho 
bought  a  20  percent  interest  in  the  Gables  Racing^Association.  The 
interest  was  taken  in  my  name  as  trustee,  and  that  contimied  on  until 
1941. 

Mr.  Hallet,  In  otlier  words,  you  came  down  as  Frank  Erickson's 
agent  in  the  Gables  Racing  Association  ? 

Mr.  Allenberc;.  As  his  attorney. 

Mr.  Hallet.  How  much  money  did  he  invest  in  the  Gables  Racino- 
Association?  '  *^ 

Mr.  Allenberg.  Upward  of  $250,000. 

Mr.  Hallet.  Did  you  serve  as  president  of  the  Troi:>ical  Park  Race 
Track? 


ORGANIZED    CMME    IN    INTERSTAT'E    COMMERCE  91 

Mr.  Allenberg.  Xo.     I  served  as  comptroller  of  the  race  track. 

Mr.  Halley.  How  much  money  was  invested  in  all  by  the  various 
people  in  this  Tropical  Park  Kace  Track  ? 

Mr.  Allenberg.  The  race  track  had  already  been  in  existence  for 
a  few  years  and  was  on  the  ver<re  of  bankruptcy  when  this  money  was 
put  in!  This  money  was  put  in  to  keep  the  race  track  solvent.  Up  td 
that  time  I  don't  know  how  nuu-li  had  been  invested. 

Mr.  Halley.  At  the  time  that  Erickson  put  his  money  in,  then,  he 
was  the  only  man  to  supply  new  capital ;  is  that  ri<rht  ? 

Mr.  Allenbekg.  That  is  ri<rht. 

Mr.  Halley.  And  he  took  over  control  of  Tropical  Park  Track? 

Mr.  Allenberg.  Yes.  sir. 

Mr.  Halley.  With  you  as  his  representative  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Were  you  on  a  salary  basis? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Did  you  have  any  interest  in  the  business  as  an  owner? 

Mr.  Allenberg.  Xo,  sir.  He  took  all  of  the  profits,  whatever  tliey 
were. 

Mr.  Halley.  Did  you  get  a  commission  of  any  kind  ? 

Mr.  Allenberg.  Xo,  sir. 

Mr.  Halley'.  a  straio;ht  salary? 

Mr.  Allenberg.  Straight  salary. 

Mr.  Haij:,ey.  Hoav  nuich  ? 

Mr.  Allenberg.  Started  at  $10,000  and  I  think  it  went  to  $15,000 
a  year. 

Mr.  Halley.  Did  you  have  any  other  business  interests  in  Miami 
or  Miami  Beach  after  1935  while  you  were  connected  with  Tropical 
Park  Track? 

Mr.  Allenberg.  Xot  while  I  was  with  Tropical  Park  Race  Track. 

Mr.  Halley.  Did  you  have  any  other  income  except  your  salary 
from  Frank  Erickson? 

IVIr.  Allenberg.  Xo.  I  didn't  get  a  salary  from  Frank  Erickson. 
It  came  from  the  Gables  Racing  Association. 

Mr.  Halley.  Which  operated  the  track  ? 

Mr.  Allenberg.  ^^Hiich  operated  the  track. 

Mr.  Halley.  And  you  devoted  all  your  time  to  the  track  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  In  1941,  what  happened  ? 

Mr.  Allenberg.  The  stock  of  the  Gables  Racing  Association  was 
sold  and  Erickson  was  then  out  of  Tropical  Park  Race  Track.  The 
stock  was  sold  in  the  Gables  Racing  Association  at  that  time  and 
he  received  the  proceeds  of  the  sale. 

Mr.  Halley.  What  did  you  do  after  that  ? 

Mr.  Allenberg.  After  that  I  made  arrangements  with  Tom  Cas- 
sara  to  take  over  the  operation  of  the  Wofford  Hotel. 

Mr.  Halley.  Would  you  state  the  circumstances  under  which  that 
arrangement  was  made?  How  did  you  first  meet  Cassara  and  so 
forth? 

JNIr.  Allenberg.  I  had  known  Cassara  down  here  and  he  heard  that 
I  was  looking  around  to  get  into  the  hotel  business  since  I  was  out 
of  Tropical  Park  Race  Track,  and  he  suggested  that  I  take  over  from 
him  the  lease  of  the  Wofford  Hotel.    I  couldn't  take  the  lease  over  be- 


92  ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE 

•cause  Mrs.  Wofford  wouldn't  sign  it,  so  we  took  it  over  under  a  man- 
agement contract,  and  I  had  a  half  interest  in  it  and  in  order  to  clean 
up  the  debts  of  the  Wofford  Hotel,  it  required  a  little  over  $20,000.  I 
put  $10,000  in  and  I  borrowed  the  balance  from  Frank  Erickson,  and  I 
regarded  it  as  a  loan  when  I  took  it,  but  he  might  have  regarded  it 
as  a  partnership  arrangement  with  me. 

At  any  rate  we  continued  on  for  2  years  and  he  got  his  money  back 
plus  an  overage,  and  one  day  I  talked  with  him  and  he  said  he  didn't 
want  to  have  anything  to  do  with  the  Wofford  Hotel.  He  said,  "You 
can  have  it  on  your  own." 

Sothen  I  continued  on  for  the  next  couple  of  years.  The  Wofford 
Hotel  was  my  own  proposition. 

Mr.  Halley.  How  much  money  did  he  give  you  to  invest  in  the  Wof- 
ford originally? 

Mr.  Allenberg.  $11,500.  He  loaned  me  some  after  that  to  keep  it 
going  with. 

Mr.  Halley.  How  much  in  all  did  he  lend  you  ? 

Mr.  Allenberg.  He  might  have  loaned  me  another  $10,000  after  I 
was  in  operation. 

Mr.  Halley.  So  your  best  estimate  is  that  he  gave  you  a  total  of 
over  $20,000  ? 

Mr.  Allenberg.  That  is  right,  and  that  was  paid  back  to  him. 

Mr.  Halley.  At  what  time  did  you  first  go  into  the  management 
of  the  Wofford? 

Mr.  Allenberg.  That  was  in  November  of  1941  ? 

Mr.  Halley.  And  when  did  you  leave  the  Wofford  ? 

Mr.  'Allenberg.  In  1945.  I  came  back  there  for  the  winter  of 
1945-46  and  stayed  there  until  it  was  either  March  or  April  of  that 
year. 

Mr.  Halley.  During  that  time,  was  Erickson  interested  in  the 
Wofford? 

Mr.  Allenberg.  For  the  first  2  years. 

Mr.  Halley.  And  after  that,  Erickson  no  longer  had  an  interest 
in  it? 

Mr.  Allenberg.  No. 

Mr.  Halley.  Did  he  receive  any  part  of  the  profits  after — in  the 
first  2  years  ? 

Mr.  Allenberg.  I  don't  know  whether  he  received  it  as  profits  or 
part  of  his  money  back. 

Mr.  Halley.  Who  kept  the  accounts  for  the  Wofford  ? 

Mr.  Allenberg.  The  accounts  were  kept  by  the  accountants. 

Mr.  Halley.  Isn't  it  a  fact  that  you  reported  the  income  to  Erick- 
son and  that  he  was  given  what  was  known  as  his  share  of  the  profits? 

Mr.  Allenberg.  It  might  have  been  reported  that  way. 

Mr.  Halley.  Continuing  with  the  Wofford  Hotel,  what  other  people 
were  in  the  management  besides  yourself  and  Cassara  ? 

Mr.  Allenberg.  After  1  got  in  there,  I  found  out  that  John  King 
had  an  interest  in  it,  and  a  man  called  Augie  Carfano  had  an  interest 
in  it. 

Mr.  Halley.  Now,  Augie  Carfano  was  called  Little  Augie,  was 
he  not  ? 

Mr.  Allenberg.  Yes. 

Mr.  Halley.  And  John  King  is  a  well-known  racketeer  from  Cleve- 
land, isn't  he  ? 


ORGANIZED    CRIME    IN    INTERSTAT'E    COMMERCE  93 

Mr.  Allenberg.  I  have  since  learned  that. 

Mr.  Halley.  You  didn't  know  it  at  that  time  ? 

Mr.  Allenberg.  No,  sir. 

Mr.  Halley.  Isn't  it  something  of  a  remarkable  coincidence  that  at 
that  one  hotel  at  the  same  time  there  should  go  into  the  management 
you  who  had  been  Erickson's  representative  with  Erickson's  money, 
Little  Augie,  and  Jolm  King — all  at  the  same  time  ? 

Mr.  Allenberg.  Yes, 

Mr.  Halley.  At  the  time,  Erickson  did  not  want  to  go  into  the 
Wofford  Hotel  deal? 

Mr.  Allenberg.  That  was  the  only  deal  that  I  could  find  for  myself 
to  go  into  business  on  the  beach  because  it  took  the  least  amount  of 
money  and  I  asked  Erickson  if  he  would  loan  me  that  money  to  take 
an  interest,  or  take  his  money  in  whatever  way  I  would  be  able  to  give 
it  to  him,  so  that  I  could  have  something  to  be  doing  down  here  at  the 
beach.  There  were  no  other  hotels  to  get.  There  were  others,  but  it 
took  a  lot  of  money  to  get  a  hotel.  I  could  have  bought  the  other  half 
of  the  interests  that  were  in  there  for  another  $20,000  if  I  had  had  it. 
I  didn't  go  in  there  to  go  in  with  Carfano,  King,  or  Erickson.  I 
originally  tried  to  go  in  with  two  other  gentleman  here  in  town,  but 
Mrs.  Wofford  would  not  consent  to  an  assignment  of  the  lease.  I  went 
to  her  and  she  said  they — she  wouldn't  consent  to  an  assignment ;  I  had 
to  go  in  on  my  own. 

Mr.  Halley.  Once  you  got  into  the  WofFord  Hotel,  a  number  of 
Erickson's  people  moved  in ;  isn't  that  right  ? 

Mr.  Allenberg.  Right. 

Mr.  Halley.  Who  were  they? 

Mr.  Allenberg.  They  were  living  there  from  time  to  time — Briggs. 

Mr.  Halley.  Who  is  Briggs,  and  will  you  tell  us  what  his  business 
was? 

Mr.  Allenberg.  Briggs  was  associated  with  Erickson. 

Mr.  Halley.  What  did  Briggs  do  ? 

Mr.  Allenberg.  He  would  represent  Erickson  in  some  of  these 
gambling  ventures  they  had;  whether  it  was  the  race  track  or  the 
Hollywood  Beach  Hotel  or  some  of  the  gambling  clubs — whatever 
they  might  be,  he  would  be  with  him. 

Mr.  Halley.  What  were  some  of  these  gambling  ventures  that  you 
speak  of?  Let's  start  with  the  race  track.  Describe  the  gambling 
ventures  at  the  race  track. 

Mr.  Allenberg.  Gambling  ventures  at  the  race  track  would  be 
where  there  are  men  to  go  to  the  race  track  or  make  bets  on  horses  and 
they  don't  bet  money  into  the  mutuel  machines,  but  they  bet  it  with 
what  are  known  in  race  tracks  as  bookmakers.  That  is  what  the  func- 
tion of  those  men  w^ould  be. 

Mr.  Halley  Let  me  see.  Erickson  has  operated  books  within  the 
grounds  of  the  various  race  tracks  around  Miami  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  he  operated  them  through  these  people  he  had  sta- 
tioned there  in  Miami  ? 

Mr,  Allenberg.  That  is  right. 

Mr.  Halley.  Who  are  some  of  the  people  who  operated  inside  of  the 
track  for  Erickson  ? 

Mr.  Allenberg.  Briggs,  Cantor,  Zeldow.  Those  men  would  also  do 
this  at  the  track :  They  handled  what  is  known  as  come-back  money. 


94  ORGANIZED    CE'IME    IN    INTERSTATE    COMMERCE 

That  is  money  that  is  bet,  that  is  called  in  to  a  telephone  somehow  in 
the  neighborhood  and  they  would  come  into  the  race  track  and  would 
bet  it  on  the  horses. 

Mr.  Halley.  There  was  a  central  clearinghouse  for  that  type  of 
bet  in  Miami,  wasn't  there,  such  as  a  bar  or  a  room  above  a  bar? 

Mr.  Allenberg.  That  would  bet  right  out  at  the  race  track. 

Mr.  Halley.  The  bets  came  in  by  phone  from  somewheres  'i 

Mr.  Allenberg.  Yes.  They  would  go  to  the  race  track  or  some 
place  in  the  vicinity  of  the  race  track.  There  might  have  been  another 
one  in  tow^n,  but  I  don't  know  whether  Erickson  would  have  anything 
to  do  with  that.    That  might  be  of  a  local  nature. 

Mr.  Halley.  The  phone  call  would  be  at  the  race  track  in  a  phone 
booth? 

Mr.  Allenberg.  Not  at,  but  right  adjacent  to  the  race  track  so  you 
can  get  inside, 

Mr.  Halley.  Somebody  to  bring  in  the  money  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  Erickson  would  have  a  man  to  receive  the  phone 
calls? 

Mr.  Allenberg.  Yes ;  it  would  be  one  of  those  men. 

Mr.  Halley.  Who  besides  Briggs  and  Cassara  did  that  work  at  the 
race  track? 

Mr.  Allenberg.  Zeldow,  Strader.  Another  fellow  used  to  be  around 
there  with  them.    At  any  rate,  I  think  the  man  died. 

The  Chairman.  How  would  it  be  if  we  got  continuity  of  what  Mr. 
Allenberg  is  telling  us  and  then  go  back  into  anything  that  we  need  to 
fill  in? 

Mr.  Halley.  Fine.    Go  right  ahead. 

Mr.  Allenberg.  Having  been  at  the  race  track  for  many  years,  I 
knew  many  of  the  intricacies  of  the  workings  and  what  tliey  do  out 
at  the  race  track.  Then  after  they  wovild  be  out  there,  tliey  would 
meet  certain  people  and  bet  on  horses,  and  they  would  bet  with  them — - 
maybe  it  might  be  John  Jones  or  Tom  Smith  who  would  make  his 
bets  with  him,  and  those  would  be  the  men  who  were  taking  the  bets. 
They  were  Erickson's  representatives.  As  to  paying  off,  they  had  an 
agreement,  whether  the  next  day  or  the  same  day  or  the  week  after- 
ward, it  all  depended  who  the  people  were.  Many  of  those  men  lived 
at  the  hotel  where  I  was  associated  with  it,  and  they  wanted  to  give 
me  the  hotel  business  rather  than  give  their  business  to  somebody 
else. 

Anyhow,  I  had  the  business,  and  I  would  accommodate  them  practi- 
cally every  day  by  cashing  checks  for  them. 

The  Chairman.  Go  ahead. 

Mr.  Allenberg.  Also  at  the  race  track  were  these  men  who  would 
sometimes,  I  imagine,  play  part  of  their  bets  back  into  the  machine 
again  in  order  to  give  the  race  track  additional  business. 

Senator,  that  I  think  was  the  picture  of  what  a  man  could  do  on 
the  race  track  pretty  fully.     He  takes  bets  from  somebody. 
>  The  Chairman.  Mr.  Allenberg,  we  want  the  picture  about  how  this 
mob  operates,  and  w^e  are  going  to  get  it  either  the  easy  way  or  the 
hard  way  because  you  know. 

Mr.  Allenberg.  I  am  telling  you  the  easy  way.  That  is  the  picture 
at  the  race  track.    They  take  their  bets,  and  they  pay  off  either  that 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  95 

day  or  tlie  next  day  or  whatever  the  method  would  be  that  they  would 
have  arranged  for  with  the  man  they  did  the  betting  with. 

The  Chairman.  What  else  happened  ? 

Mr.  Allenbekg.  And  they  would  win  or  lose  on  those  things. 

The  Chairman.  Then  you  left  the  Wofford  ? 

Mr.  Allenberg.  I  left  the  Wofford  Hotel,  yes,  sir,  in  1945. 

The  Chairman.  Where  did  you  go  to  then  ^ 

Mr.  Allenberg.  To  the  Boulevard  Hotel  with  two  partners.  One 
was  Herman  Levitt  and  the  other  was  Charlie  Collins,  both  hotel  men 
for  many  3'eai'S  on  the  beach ;  well-known  hotel  men. 

The  Chairman.  And  the  mob  went  with  you? 

Mr.  Allenberg.  Some  of  Erickson's  men  came  over  to  the  Boule- 
vard Hotel.  There  was  'nobody  followed  anybody  there.  Senator. 
There  were  many  race-track  clerks  in  the  area  of  Miami  during  the 
time  of  the  races.     The  racing  season  was  on. 

The  Chairman.  Here  first  is  a  photostat  of  what  appears  to  be  a 
pajier  dated  September  21,  1945,  relative  to  a  partnership  on  the  Wof- 
ford Hotel.     Do  you  recognize  those  signatures  ? 

Mr.  Allenberg.  I  recognize  the  names,  sir — Carf  ano  and  Lorentzen. 
Lorentzen  was  a  relative  of  John  King's;  I  remember  that. 

The  Chairman.  Let  that  be  filed  as  exhibit  No.  43. 

(Photostat  of  paper  referring  to  partnership  in  Wofford  Hotel, 
dated  September  21,  1945,  received  Jn  evidence  as  exhibit  No.  43. 
Loaned  to  committee  by  Mr.  Daniel  P.  Sullivan,  Greater  Miami  Crime 
Commission,  and  subsequently  returned  to  him.) 

The  CiLMR:\f  AN.  Here's  a  photostat  dated  December  28,  1945,  advis- 
ing about  the  formation  of  a  partnership  between  Abe  Allenberg  and 
Anthony  Carfano  and  Otto  Lorentzen.  Do  you  recognize  those  signa- 
tures ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  As  yours? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Those  are  the  men  you  were  in  partnership  with? 

Mr.  Allenberg.  It  says  I  assigned  my  interest  in  the  partnership 
over  to  those  men.     It  says  that  I  disposed  of  my  interest. 

The  Chairman.  Up  here  are  the  names  of  the  partners  and  then 
you  assigned  it  to  some  other  people? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  That  is  exhibit  No.  44. 

(Document  dated  December  28,  1945,  re  formation  of  partnership 
of  Abe  Allenberg,  Anthony  Carfano,  and  Otto  Lorentzen  received 
as  exhibit  No.  44.  Loaned  by,  and  later  returned  to  Mr.  Daniel 
Sullivan.) 

The  Chairman.  Here  is  a  photostat  of  a  document  dated  April  20, 
1945,  saying  that  Anthony  Carfano  is  a  partner  and  that  he  has  au- 
thority to  sign  checks;  is  that  correct? 

Mr.  Allenberg.  Yes,  sir.     I  was  out  of  there  along  there. 

The  Chairman.  That  will  be  exhibit  No.  45  and  made  a  part  of  the 
record. 

(Document  dated  April  20, 1946,  authorizing  Carfano  to  sign  checks 
received  in  e\^idence  as  exhibit  No.  45.  Loaned  by,  and  later  returned 
to  Mr.  Daniel  Sullivan.) 

The  Chairman.  Do  you  recognize  the  signature  on  this  paper  of 
May  23,  1946,  which  is  an  assignment? 

Mr.  Allenberg.  Yes,  sir. 


96  ORGAlSrrZED   CKIME    in   nSTTERSTATE    COMMERCE 

The  Chairman.  Tliat  will  be  exhibit  No.  46. 

(Assignment  dated  May  23,  1946,  received  in  evidence  as  exhibit 
No.  46.    Loaned  by,  and  later  returned  to  Mr.  Daniel  Sullivan.) 

The  Chairman.  Here  is  a  group  of  checks  signed  by  Abe  Allen- 
berg,  trustee,  Wofford  Hotel,  for  different  amounts,  either  signed  by 
you  or  Joseph  Cardone  or  Fred  J.  King.  Do  you  identify  the  signa- 
tures on  those  checks  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  They  will  be  received  and  made  a  part  of  the 
record. 

(Group  of  checks  signed  by  Abe  Allenberg,  trustee,  Wofford  Hotel, 
received  in  evidence,  exhibit  No.  47.  Loaned  by,  and  later  returned  to 
Mr.  Daniel  Sullivan.) 

The  Chairman.  Do  you  recognize  this  picture,  Mr.  Allenberg? 

Mr.  Allenberg.  That  is  Carf  ano. 

The  Chairman.  He  is  the  man  with  whom  you  were  in  partnership  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Anthony  Carf  ano,  alias  Little  Augie,  received  in 
evidence  as  exhibit  No.  48.)^ 

The  Chairman.  Little  Augie  was  your  partner  ? 

Mr.  Allenberg.  Yes ;  I  am  sorry  to  say. 

The  Chairman.  Do  you  recognize  this  picture? 

Mr.  Allenberg.  That  is  Frank  Erickson. 

The  Chairman.  That  is  Frank  Erickson? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  He  was  your  sponsor  in  this  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Frank  Erickson  received  in  evidence  as  exhibit 
No.  49.) 

The  Chairman.  Did  he  stay  at  the  Wofford  Hotel  ? 

Mr.  Allenberg.  Sometimes. 

The  Chairman.  And  Little  Augie  was  there,  of  course? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Do  you  recognize  this  picture? 

Mr.  Allenberg.  That  is  Joe  Adonis. 

The  Chairman.  Did  he  stay  at  your  hotel? 

Mr.  Allenberg.  I  think  he  did  at  times. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Joe  Adonis  was  received  in  evidence  as  exhibit 
No.  50.) 

The  Chairman.  Let's  go  back  just  a  minute.  The  first  was  Little 
Augie  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  What  was  his  legitimate  interest  in  INIiami  ?  Wliat 
business  did  he  have  here? 

Mr.  Allenberg.  He  had  an  interest  in  the  Raleigh  Hotel,  I  am  told, 
and  he  had  an  interest  in  the  AVofford  Hotel. 


1  Exhibit  Nos.  48  througli  99,  wliicli  are  photographs,  are  on  file  with  the  committee. 


ORGANIZED    CRIIME    IN    INTERSTAT'E    COMMERCE  97 

The  Chairman.  What  else  ?  .        t-  -it  n 

Mr  Allenberg.  He  was  supposed  to  be  representing  Jimmy  Kelly, 
his  father-in-law.  That  is  how  I  understood  it.  Jimmy  Kelly  was 
a  racketeer  and  night  club  man  in  New  York  and  a  Democratic  leader. 

The  Chairman.  What  other  interests  did  he  have  m  Miami  ^ 

Mr.  Allenberg.  Outside  of  those  two,  I  don't  know. 

The  Chairman.  What  illegitimate  interests  did  he  have? 

]\Ir.  Allenberg.  Gambling  by  playing  horses  and  going  to  the 
night  places  and  gambling.  I  don't  know  what  his  interest  was  m 
any  place. 

The  Chairman.  And  the  exhibit  before  was  that  of  Frank  J^rick- 

son? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  What  were  Frank  Erickson's  interests  in  Miami? 

Mr.  Allenberg.  Frank  Erickson's  interest  in  Miami  was  Tropical 
Park,  and  the  interest  he  had  with  me  in  the  Wofford  Hotel. 

The  Chairman.  What  else  ? 

Mr.  Allenberg.  He  had  an  interest  in  the  Colonial  Inn,  and  he  had 
an  interest  years  ago  in  the  Boheme  Club. 

The  Chairman.  What  is  his  interest  here  now  ? 

Mr.  Allenberg.  Nothing  as  far  as  I  know,  Senator. 

Mr.  Halley.  You  haven't  told  Senator  Kefauver  all  of  the  interests 
that  Frank  Erickson  has  had  in  and  around  Miami.  How  about 
the  three  big  hotels,  the  Hollywood  Beach,  Boca  Raton,  and  the 
Roney  ^ 

Mr.  Allenberg.  He  has  had  a  concession  at  the  Roney  Plaza  Hotel, 
an  interest  in  the  concession  at  the  Hollywood  Beach  Hotel,  and  the 
concession  at  the  Boca  Raton  Club. 

Mr.  Halley.  What  kind  of  concession  ?. 

Mr.  Allenberg.  Bookmaking  concession. 

Mr.  Halley.  He  operated  a  private  book  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  How  much  did  he  pay  for  the  concession  at  the 
Roney  Plaza? 

Mr.  Allenberg.  All  I  know,  Senator,  is  what  I  get  from  hearsay. 
I  never  heard  it. 

The  Chairman.  Now,  Mr.  Allenberg 

Mr.  Allenberg.  I  didn't  know  just  until  the  thing  was  closed  that 
he  was  in  it.     I  heard  he  paid  $55,000. 

The  Chairman.  You  didn't  know  anything  about  the  negotiations  ? 

Mr.  Allenberg.  No,  sir ;  not  in  the  least. 

The  Chairman,  What  did  it  come  to  at  the  Boca  Raton  Club  ? 

Mr.  Allenberg.  That  I  don't  know. 

The  Chairman.  Did  you  negotiate  any  of  these? 

Mr.  Allenberg.  No,  sir;  because  I  was  not  in  favor  of  them. 

The  Chairman.  You  didn't  approve  of  them  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Who  is  this  a  picture  of  ? 

]\[r.  Allenburg.  That  is  Meyer  Lansky. 

Mr.  Halley.  That  will  be  exhibit  No.  51. 

(Photograph  of  Meyer  Lansky  received  in  evidence  as  exhibit  No. 
61.) 

The  Chairman.  Did  he  stay  at  the  Wofford  Hotel? 

Mr.  Allenberg.  He  did  occasionally ;  yes,  sir. 


^8  ORGANIZED    CKiME    IN    INTERSTATE    COMMERCE 

The  Chairman.  He  is  a  well-known  criminal  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Who  is  this  a  picture  of? 

Mr.  Allenberg.  This  one  I  don't  know,  Senator. 

The  Chairman.  Look  on  the  back  and  see  if  you  can  recognize  his 
name  ? 

Mr.  Allenberg.  I  recognize  the  name  "'Jimmy  Bkie  Eyes,"  it  says 
on  here. 

The  Chairman.  Do  you  know  him? 

Mr.  Allenberg.  He  stopped  at  the  Wofford  Hotel. 

The  Chairman.  Then  he  was  a  customer  of  yours  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  And  he  is  a  well-known  criminal? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Didn't  he  also  have  an  interest  in  the  Colonial  Inn  with 
Erickson  ? 

Mr.  Allenberg.  From  what  I  have  read  in  the  newspapers. 

Mr.  Halley.  And  from  what  you  know,  too.  Let's  keep  away  from 
what  you  read  in  the  newspapers. 

Mr.  Allenberg.  Don't  push  me  any  further  than  I  have  to  be 
pushed.  I  don't  know.  I  never  spoke  to  the  man  about  his  interests 
in  the  Colonial  Inn.  I  never  spoke  to  the  man  about  any  of  his  in- 
terests. If  he  stopped  at  the  Wofl'ord  Hotel,  it  was  because  he  came  in 
and  rented  a  room  there. 

Mr.  Halley.  Did  you  ever  speak  to  Erickson  about  his  interests  in 
the  Colonial  Inn? 

Mr.  Allenberg.  No,  sir;  I  did  not. 

The  Chairman.  The  one  before  is  Lansky.  What  was  his  interest 
in  Miami  ? 

Mr.  Allenberg.  I  was  led  to  believe  it  was  in  the  Colonial  Inn  or 
in  gambling  places  tliat  would  be  up  in  Broward  County.  I  never 
spoke  to  him  about  it. 

The  Chairman.  You  don't  know  of  any  other  interests  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Let  this  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Vincent  x\lo,  alias  Jimmy  Blue  Eyes  received  in 
evidence  as  exhibit  No.  52.) 

The  Chairman.  Do  you  recognize  the  name  of  this  party  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  What  is  his  name? 

Mr.  Allenberg.  I  can't  think  of  it.     I  recognize  his  face. 

Tlie  Chairman.  Look  on  the  back. 

Mr.  Allenberg.  Michael  Coppola. 

The  Chairman.  Do  you  remember  him  now? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Wliat  is  his  alias? 

Mr.  Allenberg.  I  didn't  know  lie  had  an  alias,  only  what  I  see  here — 
Trigger  Mike. 

The  Chairman.  Did  you  know  him  as  Trigger  Mike? 

Mr.  Allenberg.  No,  sir. 

Tlie  Chairman.  Did  lie  stay  at  the  Wofford  Hotel? 

Mr.  Ali>eni'.er(;.  Yes,  sir;  I  am  pretty  sure. 

The  CiiAHiMAN.  What  was  his  interest  in  Miami? 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  99' 

Mr.  AiJ.EXBKHG.  I  wouldn't  know  except  that  he  was  interested  in 
gambling  houses. 

The  Chairman.  Do  you  know  of  an}'  property  he  owns? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  This  picture  will  be  received  and  made  a  part  of 
the  I'ecord. 

(Photograph  of  Michael  Coppola,  alias  Trigger  Mike,  received  ia 
evidence  as  exhibit  No.  5-).) 

The  Chairman.  Do  you  recognize  the  picture  of  this  man? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  the  back  and  see  if  you  know  his  name. 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  You  don't  know  him  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Julius  Kramer:  does  that  strike  a  familiar  ring? 

JNIr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Julius  Kramer  received  in  evidence  as  exhibit  No. 
54.) 

The  Chairman.  Do  you  recognize  the  picture  of  this  person? 

]\Ir.  Allenberg.  No,  sir. 

The  Chairman.  What  is  the  name  on  the  back  of  that  picture? 

Mr.  Allenberg.  Bennie  Kay. 

The  Chairman.  Do  you  know  Bennie  Kay  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Is  that  him? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Then  you  do  recognize  his  picture? 

Mr.  Allenberg.  I  do  know  after  I  looked  at  it. 

The  Chairman.  Was  he  a  customer  of  the  Wofford  Hotel? 

Mr.  Allenberg.  Not  when  I  was  there. 

The  Chairman.  Was  he  over  at  the  Boulevard  Hotel? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  When  did  you  see  him  ? 

Mr.  Allenberg.  Around  in  the  restaurants  in  town. 

The  Chairman.  Did  you  know  him  to  s])eak  to  ( 

Mr.  Allenberg.  I  knew  him  to  say  "hello"  to. 

The  Chairman.  Where  did  you  first  know  him  ? 

Mr.  Allenberg.  I  think  in  Wolfie's. 

The  CiiAiRMAx.  What  is  his  interest  in  Miami  ? 

Mr.  Allenberg.  He  is  in  the  gambling  house  business.  He  is  sup- 
posed to  be  the  man  connected  with  the  Blackamoor  Room  or  some 
club  over  the  Blackamoor  Room.    They  played  cards  or  gambled. 

The  Chairman.  Is  that  in  Miami  ? 

Mr.  Allenberg.  Miami  Beach. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  rec- 
ord. 

(Photograph  of  Bennie  Kay  received  in  evidence  as  exhibit  No.  55.) 

The  Chairman.  Do  you  recognize  the  picture  of  this  man? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name. 

Mr.  Allenberg.  No,  sir:  I  don't  know  him  by  name  either:  repu- 
tation or  otherwise. 


100  ORGANIZED   CRIME    IX    INTERSTATE    COMMERCE 

The  Chairman.  The  name  is  Frank 

Mr.  Allenberg,  Livorsi. 

The  Chairman.  You  never  saw  him? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Frank  Livorsi  received  in  evidence  as  exhibit 
No.  56.) 

The  Chairman.  Do  you  know  this  man  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name  on  the  back. 

Mr.  Allenberg.  I  recognize  the  name  "Poagy." 

The  Chairman.  Was  he  one  of  your  customers  at  the  hotel  ? 

Mr.  Allenberg.  He  lived  at  the  Wofford  Hotel. 

The  Chairman.  Where  is  he  from  ? 

Mr.  Allenberg.  I  don't  know. 

The  Chairman.  He  is  a  well-known  gambler,  isn't  he  ? 

Mr.  Allenberg.  I  don't  know  what  his  business  is.  Senator. 

The  Chairman.  What  was  his  interest  in  Miami  ? 

Mr.  Allenberg.  I  don't  know. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Alfred  Toriello  received  in  evidence  as  exhibit 
No.  57.) 

The  Chairman.  Do  you  recognize  this  picture  ? 

Mr.  Allenberg.  That  is  Frank  Costello. 

The  Chairman.  Did  he  ever  stay  at  the  Wofford  Hotel  ? 

Mr.  Allenberg.  Yes,  sir ;  I  think  he  did. 

The  Chairman.  Ancl  at  the  Boulevard  Hotel  ? 

Mr.  Allenberg.  No,  sir ;  he  never  stopped  there. 

The  Chairman.  How  well  did  you  know  Frank  Costello? 

Mr.  Allenberg.  How  well?  I  didn't  know  him  .well  at  all.  I 
know  him  to  say  "Hello"  to. 

The  Chairman.  He  stayed  in  your  hotel  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Did  you  know  him  in  New  York  before  you  came 
down  here  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  How  well  did  you  know  him  in  New  York  ? 

Mr.  Allenberg.  I  didn't  know  him  well  in  New  York,  either.  I 
knew  him  from  having  met  him  through  Frank  Erickson. 

The  Chairman.  How  long  did  you  know  him  in  New  York  before 
you  came  here  ? 

Mr.  Allenberg.  Maybe  2  or  3  years. 

The  Chairman.  Did  you  ever  have  any  business  dealings  with  him? 

Mr.  Allenberg.  I  never  had ;  no,  sir. 

The  Chairman.  How  did  you  happen  to  know  him? 

Mr.  Allenberg.  I  met  him  tlirough  Frank  Erickson. 

The  Chairman.  What  is  Frank  Costello's  business  interest  in 
Miami? 

Mr.  Allenberg.  I  don't  know  wliat  Frank  Costello's  business 
interest  is,  Senator.  All  I  know  is  he  is  supposed  to  be  interested  up 
in  the  Colonial  Inn  in  Broward  County,  but  not  down  here. 

The  Chairman.   Does  he  have  an  interest  up  there  now? 

Mr.  Allenberg.  That  I  don't  know,  Senator. 


ORGANIZED    CRIME   IN   INTERSTATE    COMMERCE  101 

The  Chairman.  Now,  can  you  tell  us  what  other  interests  he  has? 
Does  he  have  an  interest  in  the  bookie  operations  in  the  Koney  Plaza? 
Mr.  AiXENBEBG.  I  don't  know. 

The  Chairman.  What  is  your  best  information?  ^ 

Mr  Allenberg.  My  information  would  be  that  he  doesn  t  have. 
The  Chairman.  Let  this  photograph  be  received  and  made  a  part 

of  the  record.  .      ■,    .  ■  -,  i  -u-^ 

(Photograph  of  Frank  Costello  received  ni  evidence  as  exhibit 

No.  58.)    ^  ^     ^  .     , 

The  Chairman.  These  pictures,  most  of  whom  you  recognized,  are 

the  so-called  New  York  syndicate,  aren't  they  ?    Erickson,  Costello 

Mr.  Allenberg.  Gamblers,  yes,  sir.  •     ,    •  g 

The  Chairman.  That  is  the  so-called  New  York  syndicate,  isn  t  it  i 
Mr.  Allenberg.  I  would  say  "Yes." 
The  Chairman.  And  they  were  all  practically  customers  ot  your 

hotel  ? 

Mr'  Allenberg.  They  all  lived  at  the  Wofford  Hotel,  Senator. 

The  Chairman.  You  were  glad  to  have  them  there,  weren't  you? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Why  didn't  you  keep  them  out  ?  .•■■,. 

Mr.  Allenberg.  When  a  guest  comes  to  stop  at  a  hotel,  it  is  hard 
keeping  him  out. 

The  Chairman.  They  were  there  during  the  war  years,  weren  t 
they?    1943  and  1944? 

Mr.  Allenberg.  That  is  right. 

The  Chairman.  Were  you  turning  people  away? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  You  were  turning  people  away  in  droves,  so  you 
could  pretty  well  choose  your  guests. 

You  know  you  would  go  down  personally  to  meet  some  of  them  at 
the  train.     For  instance,  Frank  Erickson  ? 

Mr.  Allenberg.  Erickson;  yes,  sir. 

The  Chairman.  And  Costello? 

Mr.  Allenberg.  Not  Costello,  sir. 

The  Chairman.  And  Frank  Erickson  and  his  whole  bunch — his  ac- 
countant, ills  wife,  and  you  had  an  arrangement  where  you  could  drive 
your  car  next  to  where  they  would  get  off  and  put  them  in  your  car 
and  take  them  to  the  hotel. 

Mr.  Allenberg.  It  was  not  my  car  because  we  hired  it. 

The  Chairman.  You  did  have  a  car  hired  and  you  would  go  down 
and  get  them  right  out  of  the  puUman,  into  your  car  so  you  wouldn't 
have  any  inconvenience  and  they  wouldn't  be  seen  ? 

Mr.  Allenberg.  I  don't  know  that  it  actually  was  not  to  be  seen. 

The  Chairman.  Did  you  go  to  meet  all  of  your  guests  like  that? 

Mr.  Allenberg.  Some  of  them  I  did. 

The  Chairman.  Your  special  ones? 

Mr.  Allenberg.  They  would  have  to  be  special  to  go  down  and  meet 
them. 

The  Chairman.  Let's  look  at  a  few  more  pictures  and  see  if  you 
recognize  them. 

Do  you  recognize  this  man? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name  on  the  back  and  see  if  you  know 
his  name. 


102  [ORGANIZED    CRIME'   IN    INTERSTATE    COMMERCE 

Mr.  Allenberg.  I  don't  see  any  name,  Senator,  unless  it  is  "Sulli- 
van." 

The  Chairman.  "Angelino  from  Albany." 

Mr.  Allenberg.  The  name  means  nothing  to  me,  Senator. 

Mr.  Halle Y.  That  is  exhibit  No.  59. 

(Photograph  of  George  Angersola  received  in  evidence  as  exhibit 
No.  59.) 

Mr.  Halley.  We  have  a  name  "George  Angersola." 

Mr.  Allenberg.  That  is  George  King. 

Mr.  Halley.  That  is  George  King?     It  doesn't  look  like  him. 

Mr.  Allenberg.  I  know  George  King.  That  is  none  of  the  brothers 
of  John  King. 

The  Chairman.  Was  John  King  or  George  King  a  customer  of 
yours  ? 

Mr.  Allenberg.  George  King  lived  at  the  AVofford. 

The  Chairman.  And  lie  is  of  the  so-called  Cleveland  gang? 

Mr.  Allenberg.  So  I  am  told.  Senator. 

The  Chairman.  You  know  that ;  don't  you  ? 

Mr.  Allenberg.  I  don't  know  it,  Senator. 

The  Chairman.  You  know  all  of  these  men  have  criminal  records  as 
long  as  your  arm. 

Mr.  Allenberg.  Now  we  do. 

The  Chairman.  You  know  it  at  the  time  ? 

Mr.  Allenberg.  No;  I  didn't  know  it  at  the  time.  All  that  has 
come  out  since  then. 

The  Chairman.  He  has  been  in  the  Boulevard  Hotel  with  you; 
hasn't  he? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Whose  is  the  second  picture  ? 

Mr.  Allenberg.  John  King. 

The  Chairman.  Is  he  a  brother? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  He  is  another  one  of  the  Cleveland  gang;  isn't  he? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Was  he  a  customer  of  yours  at  the  Wofford  Hotel  ? 

Mr.  Allenberg.  John  King  had  an  interest  in  it. 

The  Chairman.  In  the  Wofford  Hotel? 

Mr.  Allenberg.  Yes,  sir.  That  is  the  same  James  King  as  on  those 
papers. 

The  Chairman,  And  he  had  a  criminal  record  before  he  had  an 
interest  in  the  Wofford  Hotel? 

Mr.  Allenberg.  I  did  not  know  it. 

The  Chairman.  This  photograph  will  be  received  and  made  a  part 
of  the  record. 

(Photograph  of  John  King  received  in  evidence  as  exhibit  No.  60.) 

The  Chairman.  Do  you  recognize  this  man  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name. 

Mr.  Allenberg.  I  don't  recognize  him. 

The  Chairman.  What  is  his  name? 

Mr.  Halley.  Romeo  Joseph  Civatta. 

The  Chairman.  That  will  be  received  in  evidence  and  made  a  part 
of  the  record. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  103 

(Photograph  of  Romeo  Joseph  Civatta  received  in  evidence  as 
exhibit  No.  Ol.) 

The  Chairman.  Do  you  recognize  this  man  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name  on  the  back  and  see  if  you  recog- 
nize his  name. 

Mr.  Allenberg.  No,  sir ;  I  do  not. 

Mr.  Halley.  C-i-b-e-t-t-a. 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name,  and  see  if  you  recognize  that 
name. 

Mr.  Allenberg.  No,  sir;  I  do  not. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Tony  L.  Cibetta  received  in  evidence  as  exhibit 
No.  62.) 

The  Chairman.  Do  you  recognize  this  man?     What  is  his  name? 

Mr.  Allenberg.  It  is  the  same — Civetta — Carlo  F.  Civetta.  I  don't 
know  him. 

The  Chairman.  It  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Carlo  F.  Civetta  received  in  evidence  as  exhibit 
No.  63.) 

The  Chairman.  Do  you  recognize  this  picture  ? 

Mr.  xVllenberg.  No,  sir. 

The  Chairman.  Read  his  name. 

Mr.  Allenberg.  Joseph  Di  Carlo. 

The  Chairman.  Was  he  a  customer  of  yours  ? 

Mr.  Allenberg.  He  was  a  customer  of  the  hotel,  but  I  don't  remem- 
ber him ;  I  remember  the  name. 

The  Chairman.  How  about  Civetta? 

Mr.  xVllenberg.  I  don't  i-emember  him. 

The  Chairman.  Was  he  a  customer? 

Mr.  Allenberg.  I  don't  remember. 

The  Chairman.  This  picture  will  be  received  in  evidence  and  made 
a  part  of  the  record. 

(Photograph  of  Joseph  Di  Carlo  received  in  evidence  as  exhibit 
No.  64.) 

The  Chairman.  How  about  Sam  Di  Carlo.  Do  you  recognize  his 
picture? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Do  you  remember  his  name? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Was  he  a  guest  at  the  hotel  ? 

Mr.  Allenberc;.  When  I  say  I  don't  remember  I  mean  I  don't 
remember  whether  it  was  Sam  or  George  or  what  the  name  was,  but  1 
remember  the  name  Di  Carlo. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Sam  Di  Carlo,  alias  Toto,  received  in  evidence  as 
exhibit  No.  65.) 

The  Chairman.  Do  you  recognize  this  picture? 

Mr.  Allenberg.  Yes;  I  remember  this  fellow. 

The  Chairman.  Who  is  he  ? 

68958 — 50 — i)t.  1 8 


104  lORG'ANIZED    C'RtlME!  IN   INTERSTATE    COMMERCE 

Mr.  Allenberg.  His  name  is  Miller.  He  never  lived  at  the  Wof- 
ford  Hotel. 

The  Chairman.  You  have  known  him  here  for  quite  a  while  ? 

Mr.  Allenberg.  Known  of  him. 

The  Chairman.  Do  you  know  him  personally  ? 

Mr.  Allenberg.  I  know  him  to  say  hello  to,  but  that  is  all. 

The  Chairman.  Is  he  a  criminal  ? 

Mr.  Allenberg.  I  don't  know,  except  that  I  see  a  mark  on  here. 

The  Chairman.  That  will  be  received  in  evidence  and  made  a  part 
of  the  record. 

(Photograph  of  Sam  Miller  received  in  evidence  as  exhibit  Xo.  66.) 

The  Chairman.  Do  you  recognize  this  man  'i 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Fred  King. 

Mr.  Allenberg.  That  does  not  look  like  Fred  King ;  the  one  I  know. 
I  know  Fred  King. 

The  Chairman.  You  know  Fred  King? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Fred  King  received  in  evidence  as  exhibit  No.  67.) 

Mr.  Halley.  You  don't  recognize  him  even  after  you  see  the  picture  ? 

Mr.  Allenberg.  You  can  see  the  smile  on  his  face  that  that  is  him. 

The  Chairman.  Do  you  recognize  this  picture? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Read  his  name. 

Mr.  Allenberg.  I  don't  know^  him.     I  know  the  name  by  reputation. 

The  Chairman.  Was  he  a  guest  at  your  hotel  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  And  you  don't  remember  him? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Do  you  know  this  man  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  The  picture  of  Abraham  Zwillman  will  be  No.  68. 

(The  photograph  of  Abraham  Zwillman  received  in  evidence  as 
exhibit  No.  68.) 

Mr.  Allenberg.  He  is  a  friend  of  John  King's. 

The  Chairman.  Did  he  stay  at  the  Wofford  Hotel? 

Mr.  Allenberg.  I  think  he  stayed  at  the  Wofford,  but  I  am  not 
sure. 

The  Chairman.  Do  you  know  this  man  ? 

Mr.  Allenberg.  That  is  Jack  Friedlander,  a  man  with  a  gambling 
reputation. 

The  Chairman.  Where  did  he  come  from  ? 

Mr.  Allenberg.  I  understood  he  came  from  Jersey. 

The  Chairman.  Was  he  a  guest  at  the  Wofl'ord  Hotel  ? 

Mr.  Allenberg.  I  don't  think  so.  Senator.  I  know  who  he  is,  but 
I  don't  think  he  stopped  at  the  Wofford  Hotel. 

The  Chairman.  But  he  is  a  well  known  local  gambler? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  What  is  his  interest  in  Miami? 

Mr.  Allenberg.  Gambling  houses,  as  far  as  I  know. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  105 

(Photograph  of  Jack  Friedlander  received  in  evidence  as  exhibit 
No.  69.) 

]Mr.  Halley.  Do  you  know  what  gambling  houses  Jack  Fried- 
lander  is  in? 

Mv.  Allenberg.  The  Island  Club — a  couple  of  years. 

Mr.  Halley.  Any  others? 

Mr.  Allenberg.  The  86  Club  a  couple  of  years  ago. 

The  Chairman.  Do  you  recognize  this  picture? 

INIr.  Allenberg.  No,  sir. 

The  Chairman.  Read  his  name. 

Mr.  Allenberg.  Nicholas  Delmore. 

The  Chairman.  Did  you  ever  hear  of  his  name  ? 

Mv.  Allenberg.  Yes,  sir. 

The  Chairman.  Was  he  a  guest  of  yours  at  the  Wofford  Hotel? 

]Mr.  Allenberg.  I  don't  remember  whether  he  was  or  not.  He  is 
vague  to  me. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Nicholas  Delmore  received  in  evidence  as  exhibit 
No.  TO.) 

The  Chairman.  Do  you  know  William  ]Mooretti  ? 

Mr.  Allenberg.  He  stopped  at  the  Wofford  Hotel,  but  I  wouldn't 
recognize  him  from  this  picture;  but  he  stopped  there. 

Thhe  Chairman.  Who  is  he? 

Mr.  Allenberg.  He  is  from  Jersey,  too ;  supposed  to  be  a  gambler 
from  Jersey. 

Tlie  Chairman.  A  part  of  the  so-called  Jersey  gang  or  mob? 

Mr.  Allenberg.  The  reason  I  remember  his  name  is  he  moved  from 
the  Wofford  Hotel  up  to  one  of  the  better  hotels — the  Versailles  or 
something.    I  remember  the  name. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  William  Mooretti  received  in  evidence  as  exhibit 
No.  71.) 

The  Chairman.  Do  you  remember  this  man? 

jNIr.  Allenberg.  No,  sir. 

The  Chairman.  Read  his  name. 

Mr.  Allenberg.  No  ;  I  don't  remember  him  at  all. 

The  Chairman.  Do  you  remember  that  name  as  being  at  your  hotel  ? 

Mr.  Allenberg.  I  remember  a  De  Carlo.  We  had  three  pictures, 
Senator,  but  I  don't  remember  which  one. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Angelo  De  Carlo  received  in  evidence  as  exhibit 
No.  72.) 

The  Chairman.  Do  you  know  this  person  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Read  his  name. 

Mr.  Allenberg.  No  ;  I  don't  know  him.     I  never  saw  him. 

Tlie  Chairman.  What  is  the  name  on  that  ? 

Mr.  Allenberg.  Riga. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  William  Riga  received  in  evidence  as  exhibit 
No.  73.) 

The  Chairman.  Do  you  know  this  person  ? 


106  lORG'ANIZED    CRIME:  IN   USTTERSTATE    COMMERCE 

Mr.  Allenberg.  That  is  Joe  Massei. 
The  Chairman.  Where  is  he  from? 
Mr.  Allenberg.  From  Detroit. 

The  Chairman.  Was  he  a  guest  at  the  Wofford  Hotel  ? 
Mr.  Allenberg.  No,  sir. 
The  Chairman.  Where  did  you  know  him? 

Mr.  Ali^nberg.  He  used  to  visit  King  and  Carfano  and  I  met  him 
around  there. 

Mr.  Halley.  Is  Massei  interested  in  any  gambling  enterprise  in  the 
Miami  vicinity  that  you  know  of? 

Mr.  Allenberg.  Only  by  reputation  that  I  have  heard ;  Greenacres 
is  the  place  I  heard. 

Mr.  Halley.  He  has  a  very  substantial  interest  in  the  so-called  big 
crap  games,  doesn't  he  ? 

Mr.  Allenberg.  I  am  not  sure  what  it  is,  but  I  know  he  is  supposed 
to  have  a  substantial  interest  in  Greenacres.  He  also  has  a  legitimate 
business  here — the  Miami  Provision  Co. 

The  Chairman.  What  is  the  Miami  Provision  Co.? 

Mr.  Allenberg.  A  meat  company. 

The  Chairman.  Is  that  located  on  the  beach  ? 

Mr.  Allenberg.  No  ;  it  is  located  in  Miami. 

The  Chairman.  Does  he  have  an  interest,  direct  or  indirect,  in  the 
Wotford  Hotel,  or  did  he  have? 

Mr.  Allenberg.  Not  that  I  know  of. 

The  Chairman.  How  about  the  Boulevard  Hotel? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  Joseph  Massei  received  in  evidence  as  exhibit  No. 
74.) 

The  Chairman.  Do  you  know  this  person? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Read  his  name. 

Mr.  Allenberg.  Lefty  Clark. 

The  Chairman.  Do  you  know  Bischoff  ?      (Alias  Lefty  Clark.) 

Mr.  Allenberg.  Lefty  Clark. 

Tlie  Chairman.  Look  at  him.     Do  you  recognize  him  ? 

Mr.  Allenberg.  He  got  fatter,  think,  since  this  picture. 

The  Chairman.  Was  he  a  guest  at  the  Wotford  Hotel  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Where  did  you  know  him  ? 

Mr.  Allenberg.  I  met  him  around  the  Wofford  Hotel.  He  never 
lived  there. 

The  Chairman.  What  is  his  legitimate  interest  in  Miami? 

Mr.  Allenbeug.  I  don't  know  that  he  has  any. 

The  Chairman.  Illegitimate  interest? 

Mr.  Allenberg.  Greenacres. 

The  Chairman.  You  saw  him  around  the  Wofford  Hotel? 

Mr.  Allenberg.  I  would  say  that  I  didn't. 

The  Chairman.  That  will  be  received  and  made  a  ])art  of  the  record. 

(Photogra])h  of  AVilliam  BisclioH'.  alias  Lefty  Clerk,  received  in    | 
evidence  as  exiiibit  No.  75.) 

The  Chairman.  Do  you  know  this  person? 

Mr.  Allenberg.  No,  sir;  I  don't  know  him. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  107 

The  Cpiairmax.  Look  at  his  name. 

Mr.  Allenberg.  No,  sir;  I  don't  recognize  him.     Louis  Ricciardi. 
The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 
(Photograph  of  Louis  Ricciardi  received  in  evidence  as  exhibit 
No.  76.) 

The  Chairman.  Do  you  know  Joe  Burnstein? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Or  James  Burnett?     Do  you  recognize  that  pic- 
ture? 

Mr.  Allenberg.  I  don't  recognize  it. 

The  Chairman.  Never  saw  him  before  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  rec- 
ord. 

(Photograph  of  Joe  Burnstein  received  in  evidence  as  exhibit  No. 
77.) 

The  Chairman.  How  about  Pete  Licavoli  or  Little  Pete?    Do  you 
remember  him  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name  and  his  aliases. 

Mr.  Allenberg.  I  don't  know  him. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  rec- 
ord. 

(Photograph  of  Pete  Licavoli  received  in  evidence  as  exhibit  No. 
78.) 

The  Chairman.  Do  you  know  Isadore  Blumenfield  ? 

Mr.  Allenberg.  No,  sir ;  I  do  not. 

The  Chairman.  Did  you  ever  see  his  name  before  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Isadore  Blumenfield  received  in  evidence  as  exliibit 
No.  79.) 

The  Chairman.  Do  you  recognize  this  person  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  name. 

Mr.  Allenberg.  I  know  the  man  by  name,  but  I  don't  even  know 
him. 

The  Chairman.  Was  he  a  guest  at  your  hotel  ? 

Mr.  Allenberg.  No,  sir;  he  never  stopped  there. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Martin  Francis  Guilfoyle  received  in  evidence  as 
exhibit  No.  80.) 

The  Chairman.  How  about  the  Fischetti  boys? 

Mr.  Allenberg.  I  know  them  by  name. 

The  Chairman.  Did  they  stop  at  the  Woiford? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Where  did  they  stop  ? 

Mr.  Allenberg.  I  don't  know. 

The  Chairman.  Did  you  ever  see  them  in  Miami? 

Mr.  Allenberg.  On  Twenty-third  Street. 

The  Chairman.  Did  they  ever  come  to  the  WofFord  Hotel  ? 

Mr.  Allenberg.  They  have  a  home  here,  as  I  understand  it. 

The  Chairman.  You  do  know  them  ? 

Mr.  Allenberg.  Yes,  sir. 


108  ORGANIZED    CRIIME   IN    INTERSTATE    COMMERCE 

The  Chairman.  Is  this  a  picture  of  Charles  Fischetti  ? 

Mr.  Allenber(?.  Yes,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Charles  Fischetti  received  in  evidence  as  exhibit 
No.  81.) 

The  Chairman.  What  about  Murray  Humphrey. 

Mr.  Allenberg.  I  don't  laiow  him.    I  don't  remember  him. 

The  Chairman.  Do  you  know  his  name  ? 

Mr.  Allenberg.  Only  from  seeing  it  in  the  newspapers. 

The  Chairman.  You  have  never  seen  him  personally  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Murray  Humphrey  received  in  evidence  as  exhibit 
No.  82.) 

The  Chairman.  Do  you  know  this  man  ? 

Mr.  Allenberg.  He  has  been  in  the  vicinity  on  Twenty-fourth 
Street. 

The  Chairman.  Where  is  he  from  ? 

Mr.  Allenberg.  Either  Detroit  or  Chicago. 

The  Chairman.  Was  he  a  part  of  the  old  Capone  syndicate? 

Mr.  Allenberg.  I  don't  know  it,  except  from  what  I  have  heard. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Martin  Accardo  received  in  evidence  as  exhibit 
No.  83.) 

(Photographs  of  Max  Caldwell  and  Paul  Viela  received  in  evidence 
as  exhibits  Nos.  84  and  85,  respectively.) 

The  Chairman.  Do  you  recognize  this  picture? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Ralph  Buglio? 

Mr.  Allenberg.  I  don't  know  him. 

The  Chairman.  Was  he  a  guest  of  the  hotel  ? 

Mr.  Allenberg.  I  would  say  "No." 

The  Chairman.  This  will  be  received  in  evidence  and  made  a  part 
of  the  record. 

(Photograph  of  Ralph  Buglio  received  in  evidence  as  exhibit 
No.  86.) 

The  Chairman.  Willie  Heeney  ?    Do  you  know  him  ? 

Mr.  Allenberg.  No,  sir ;  I  do  not  know  him. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the 
record. 

(Photograph  of  William  Heeney  received  in  evidence  as  exhibit 
No.  87.) 

Mr.  Allenberg.  Is  that  the  same  man  that  might  have  a  liquor 
store  on  Washington  Avenue?  I  don't  know  him,  either,  but  there 
is  another  man  by  the  name  of  William  Heeney. 

The  Chairman.  Do  you  know  Nig  Rosen  or  Harry  Rosen? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Look  at  his  picture  and  see  if  you  recognize  him. 

Mr.  Allenberg.  No,  sir ;  I  do  not  recognize  him. 

The  Chairman.  Have  you  ever  heard  his  name  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Has  he  ever  been  a  guest  of  the  Wofford  Hotel? 

Mr.  Allenberg.  I  don't  think  so. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  109 

The  Chairman.  That  will  be  received  in  evidence  and  made  a  part 
of  the  record. 

(Photograph  of  Harry  Rosen  received  in  evidence  as  exhibit  No. 
88.) 

The  Chairman.  Samuel  Hoffman? 

Mr.  Allenberg.  I  don't  recognize  him,  either. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Samuel  Hoffman  received  in  evidence  as  exhibit 
No.  89.) 

The  Chairman.  David  Glass  ? 

Mr.  Allenberg.  I  know  him. 

The  Chairman.  Where  did  you  know  him  ? 

Mr.  Allenberg.  He  was  operating  the  Grand  Hotel.  He  is  in  the 
hotel  business. 

The  Chairman.  Is  he  still  in  the  hotel  business  ? 

Mr.  Allenberg.  He  is  over  at  the  Sands  Hotel. 

The  Chairman.  Does  he  operate  the  Sands  Hotel  ? 

Mr.  Allenberg.  I  think  so. 

The  Chairman.  Where  is  Rosen  from  ? 

Mr.  Allenberg.  This  is  David  Glass. 

The  Chairman.  I  mean  David  Glass. 

Mr.  Allenberg.  He  is  from  Philadelphia. 

The  Chairman.  And  Rosen  is  from  Philadelphia,  too,  isn't  he? 

Mr.  Allenberg.  That  I  don't  know. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  David  Glass  received  in  evidence  as  exhibit  No.  90.) 

The  Chairman.  Do  you  know  Jack  Silver  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

( Photograph  of  Jack  Silver  received  in  evidence  as  exhibit  No.  91.) 

The  Chairman.  Do  you  know  Max  Segal  ? 

INIr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Max  Segal  received  in  evidence  as  exhibit  No.  92.) 

The  Chairman.  Do  you  recognize  this  picture  ? 

Mr.  Allenberg.  No;  I  don't. 

The  Chairman.  As  Frank  Russo  ? 

Mr.  Allenberg.  No,  sir. 

The  CiiAiR3iAN.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Frank  Russo  received  in  evidence  as  exhibit  No.  93.) 

The  Chairman.  Do  you  know  this  man's  name  ? 

Mr.  Allenberg.  No,  sir. 

Tlie  Chairman.  Abe  Martin,  alias  Abe  Glassman  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Abe  Martin  received  in  evidence  as  exhibit  No.  94.) 

The  Chairman.  Do  you  know  John  Rosen  or  Edwin  Goldberg  or 
Irving  Greenberg? 

Mr.  Allenberg.  No  ;  I  don't  know  him. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  John  Rosen  received  in  evidence  as  exhibit  No.  95.) 

The  Chairman.  Do  you  know  Nathan  Stromberg? 

Mr.  Allenberg.  No,  sir. 


110  (ORGANIZED    CRttMEl   IN    INTERSTATE    COMMERCE 

7 'he  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Nathan  Stromberg  received  in  evidence  as  exhibit 
No.  96.) 

The  Chairman.  Do  you  know  Joseph  Herman  Kriss? 

Mr.  Allenberg.  No,  sir. 

The  Ciiair]\ian.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Joseph  Herman  Kriss  received  in  evidence  as 
exhibit  No.  97.) 

The  Chairman.  Do  you  know  Tony  Narcisi  ? 

Mr.  Aelenberg.  No,  sir. 

The  Chairman.  That  will  be  received  and  made  a  part  of  the  record. 

(Photograph  of  Tony  Narcisi  received  in  evidence  as  Exhibit  No. 
98.) 

The  Chairman.  Where  did  the  Philadelphia  gang  stay  when  they 
were  down  here? 

Mr.  Allenberg.  I  don't  know,  Senator. 

The  Chairman.  At  the  Sands  Hotel  ? 

Mr.  Allenberg.  I  don't  know. 

The  Chairman.  Do  you  know  Frank  Matteo  ? 

Mr.  Allenberg.  No  ;  I  don't  know  this  fellow. 

The  Chairman.  That  will  be  received  and  made  a  j^art  of  the  record. 

(Photograph  of  Frank  Matteo  received  in  evidence  as  Exhibit  No. 
99.) 

The  Chairman.  Mr.  Allenberg,  a  remarkable  number  of  these  peo- 
ple who  are  big-time  gamblers  and  acquaintances  of  yours  stayed  at 
your  hotel. 

Mr.  Allenberg.  I  didn't  know  the  reputation  of  these  people  until 
the  last  few  years,  Senator,  and  they  lived  there  years  ago,  before  any 
of  us  knew  of  their  reputations  or  had  it  called  to  their  attention. 

The  Chairman.  You  knew  what  they  were  doing  in  your  hotel  ? 

Mr.  Allenberg.  Well,  they 

The  Chairman.  They  were  gamblers  and  they  made  your  hotel 
their  headquarters  for  their  activities. 

Mr.  Allenberg.  I  can't  say.  Senator.  I  don't  know.  Some  of  them 
were  gamblers,  but  I  didn't  know  all  of  them  to  be  gamblers.  People 
come  down  here  to  go  to  the  race  tracks  every  day,  anxious  to  gamble, 
and  they  gamble  thousands  of  dollars  at  night. 

Mr.  Halley.  Mr.  Aallenberg,  you  were  in  the  Wotford  Hotel  from 
1941  to  1948;  is  that  right? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  in  the  Boulevard  Hotel  in  1946,  1947,  1948,  and 
1949? 

Mr.  Allenberg.  Yes.     My  lease  just  terminated. 

Mr.  Halley.  When  did  the  lease  at  the  Boulevard  Hotel  terminate? 

Mr.  Allenberg.  April  1,  1950. 

Mr.  Halley.  Eight  up  to  April  1,  1950,  you  have  continued  to 
operate  the  Boulevard  Hotel  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  right  up  to  April  1950  various  of  Erickson's 
people  stayed  at  the  Boulevard  Hotel  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Who  were  they  ? 

Mr.  Allenbeu(;.  Bert  Briggs,  Cantor,  Zeldow^;  that  is  all  I  can 
remember  offhand  that  stayed  there  this  last  winter.     I  wasn't  around 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  111 

tlie  hotel  last  winter  because  I  ^Yas  over  operating  the  Robert  Richter 
Hotel. 

Mr,  H ALLEY.  Did  they  continue  to  operate  their  gamblino-  from  the 
Boulevard  Hotel  up  there  last  winter,  as  you  have  previously  testified 
they  did  in  the  past? 

Mr.  Allenherg.  I  would  say  that  they  have  not  changed  any. 

Mr.  Halley.  As  I  understand  your  testimony,  Briggs  ancl  Cantor 
in  particular  would  be  in  charge  of  the  operations  within  the  track? 

Mr.  Allenbekg.  That  is  right. 

Mr.  Halley.  At  what  tracks  did  they  operate? 

Mr.  Allenberg.  Any  track  that  happened  to  be  open. 

Mv.  Halley.  At  the  track  they  W'Ould  take  bets  from  bettors  at  the 
track  personally,  and  they  had  a  method  of  receiving  bets  by  telephone  ? 

Mr.  Allenberg.  They  wouldn't  receive  the  bets  by  telephone  in  the 
race  track.     That  would  have  to  be  outside  of  the  track. 

Mr.  Halley.  They  had  an  associate  outside  of  the  track? 

Mr.  Allenberg.  Yes. 

Mr.  Halley.  Who  reported  to  them  as  soon  as  he  got  the  bet? 

Mr.  Allenberg.  They  would  hit  the  machines  and  make  the  bet. 
That  was  not  done  for  the  purpose  of  betting  with  them.  That  was 
for  the  purpose  of  putting  money  into  the  machines.  These  bets  out- 
side the  track  were  sent  to  the  race  tracks.  That  is  what  they  call 
comeback  money  in  race  tracks. 

Mr.  Halley.  What  would  be  in  that  for  Erickson,  taking  bets  from 
the  machines?     Why  would  he  do  that? 

Mr.  Allenberg.  The  reason  they  do  that  is  that  comes  not  from 
down  here,  but  from  Jersey  or  wherever  else  they  might  be  or  have 
been  operating,  and  if  they  got  big  bets  from  Tom  Jones  and  if  Tom 
hit,  they  wanted  to  reduce  tlie  size  of  the  bet  that  they  took. 

Mr.  Halley.  They  w^oulcl  put  it  in  the  machine  if  they  didn't  want 
to  book  it  themselves? 

Mr.  Allenberg.  That  is  right. 

Mr.  Halley.  Who  operated  that  comeback  operation?  What  in- 
dividual ? 

Mr.  Allenberg.  Who  did  it  the  last  winter,  I  don't  know. 

Mr.  Halley.  Who  did  it  before  that  ? 

Mr.  Allenberg,  I  can't  think  of  his  name.  The  fellow  is  dead. 
He  died  here  last  year. 

Mr.  Halley.  One  of  Erickson's  people  ? 

Mr.  Allenberg.  Yes,  sir. 
_  Mr.  Halley.  Did  they  also  receive  bets  by  telephone  from  other 
cities  ? 

Mr.  Allenberg.  Not  at  the  Boulevard  Hotel. 

Mr.  Hallp:y.  Where  did  they  receive  them? 

Mr.  Allenberg.  That  would  be  in  the  other  office,  not  down  here. 

Mr.  Halley.  You  are  speaking  of  the  Teepee  Grill  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Tell  the  committee  about  that. 

Mr.  Allenberg.  I  don't  know^  anything  about  the  Teepee  Grill. 

Mr.  Halley.  You  must. 

Mr.  Allenberg.  I  am  telling  you  that  all  I  know  is  that  it  is  in  the 
nature  of  a  night  club.  That  is  all  I  know  of  the  Teepee  Grill.  I  was 
never  there  in  my  life.    I  wouldn't  know  where  it  is  or  anything. 


112  ORGANIZED    CRIIMEI   IN    INTERSTATE    COMMERCE 

Mr.  Hallet.  There  was  a  very  elaborate  operation  on  the  floor 
above  the  night  ckib  of  the  Teepee  Grill  and  you  know  about  it,  I  am 
sure.  I  think  this :  That  it  is  time  for  you  to  convince  the  committee 
that  you  are  willing  to  tell  the  committee  what  you  know. 

Mr.  Allenberg.  This  is  the  first  time  I  ever  knew  the  Teepee  Grill 
had  anything  upstairs  over  their  show  place.  This  is  the  first  time  that 
I  ever  heard  of  it. 

Mr.  Haleey.  Where  did  the  wires  come  from  out  of  the  city  for  the 
booking  of  bets  by  telephone  ? 

Mr.  Allenberg.  I  don't  know. 

Mr.  Halley.  You  know  that  they  did  come  in;  that  bets  were 
booked  and  received  by  phone  ? 

Mr.  Allenberg.  There  were  bets  made  all  over  the  United  States 
in  different  gambling  houses. 

Mr.  Halley.  I  mean  in  Miami — the  people  who  stayed  at  the  Boule- 
vard Hotel — Briggs,  Cantor,  and  their  associates  received  bets  by 
telephone,  didn't  they  ? 

Mr.  Allenberg.  Not  at  the  Boulevard  Hotel. 

Mr.  Halley.  They  received  them  somewhere. 

Mr.  Allenberg.  I  don't  know  where  they  received  them. 

Mr.  Halley.  You  know  they  received  such  bets. 

Mr.  Allenberg.  They  may  have  had  an  office  where  the  telephones 
were  but  I  don't  know  where  it  was  and  didn't  know  anything  about  it. 

Mr.  Halley.  You  know  there  was  such  an  office. 

Mr.  Allenberg.  There  was  an  office. 

Mr.  Halley.  Where  they  received  telephone  bets  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Didn't  they  report  every  day  to  Erickson  or  his  ac- 
countant in  New  York  on  the  results  of  the  day's  operations? 

Mr.  Allenberg.  I  would  say  that  they  did, 

Mr.  Halley.  How  did  they  report  ? 

Mr.  Allenberg.  I  don't  know ;  I  suppose  by  telephone  or  by  letter. 

Mr.  Halley.  Wasn't  that  all  done  in  the  Boulevard  Hotel  ? 

Mr.  Allenberg.  I  would  assume  it  was,  but  I  don't  know.  I  would 
say  "Yes" ;  it  was  done  that  way. 

Mr.  Halley.  These  were  all  your  close  friends  ? 

Mr.  Allenberg.  Yes,  but  I  didn't  do — I  don't  know  how  they  oper- 
ated their  business. 

Mr.  Halley.  They  didn't  shut  their  doors  to  you. 

Mr.  Allenberg.  They  didn't  if  I  wanted  to  go  in  and  see  what  went 
on,  but  I  never  went  in. 

Mr.  Halley.  You  knew  what  was  going  on? 

Mr.  Allenberg.  They  sent  their  notices,  or  whatever  they  had. 

Mr.  Halley.  Many  people  around  the  Boulevard  knew,  so  you  must 
have  known,  too. 

Mr.  Allenberg.  Of  course  I  knew  it  was  going  on,  but  I  didn't 
know  what  they  were  doing.  I  don't  know  what  they  had  and  I 
didn't  know  how  they  handled  it. 

Mr.  Halley.  At  the  end  of  each  day,  the  men  at  the  track  would 
come  in  with  their  money. 

Mr.  Allenberg.  Yes. 

Mr.  Halley.  And  somebody  would  sit  down  to  total  it  up,  Avouldn't 
they? 

Mr.  Allenberg.  Yes,  sir. 


ORGANIZED   CRIME    IN    INTERSTATE    COMMERCE  113 

Mr.  Hai.ley.  And  that  was  done  upstairs  in  the  Boulevard  Hotel? 
Mr.  Allenberg.  Yes. 

Mr.  Halley.  And  the  next  morning  some  of  the  checks  went  to 
the  bank  to  be  cashed,  didn't  they  ? 
Mr.  Allenberg.  Yes. 
Mr.  Halley.  Who  would  do  that  ? 

Mr.  Allenberg.  I  would  cash  checks  for  them  if  they  asked  me  to. 
Mr.  Halley.  Would  you  endorse  the  checks  ? 

Mr.  Allenberg.  Sometimes.  The  betting  at  the  race  track  was 
legal.  There  were  mutuel  windows  where  everybody  was  betting. 
It  was  all  mixed  up  in  a  situation  where  people  are  betting  on  horses, 
and  it  didn't  seem  to  be  anything  out  of  line.  Everybody  was  play- 
ing horses  or  gambling  down  there  or  doing  one  of  those  kinds  of 
things.     You  cTidn't  even  think  of  it. 

Mr.  Halley.  You  have  stated  the  atmosphere  and  you  have  stated 
the  reasons  and  also  the  facts.  The  committee  is  not  at  this  moment 
sitting  in  judgment.  The  committee  is  sitting  to  get  the  facts.  If 
you  want  to  state  as  part  of  the  facts  how  widespread  it  was,  ex- 
plain it- 

Mr.  Allenberg,  I  can  only  tell  you  as  much  as  happened  around 
the  Boulevard  Hotel. 

Whether  there  were  three  or  four  or  five  men  who  would  come 
back  at  night  and  go  to  their  room — and  assume  for  the  sake  of 

the  record  that  they  compiled  their  record  of  the  day  there 

Mr.  Halley.  You  don't  have  to  assume  it.  You  know  it,  don't 
you? 

Mr.  Allenberg.  Yes;  I  know  it.  I  never  saw  them  do  it,  but  I 
would  assume  that  is  what  happened. 

Mr.  Halley.  You  know  it  beyond  any  doubt.     There  is  no  doubt 
in  your  mind  that  that  is  what  they  were  doing  up  there,  is  there  ? 
Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  Did  Erickson  also  receive  bets  from  other  bookies 
and  other  gamblers  in  the  nature  of  lay-offs? 

Mr.  Allenberg.  That  would  be  at  the  race  track. 
Mr.  Halley.  Did  he  do  it  ? 
Mr.  Allenberg.  I  would  say  that  he  did. 

Mr.  Halley,  Who  are  some  of  the  people  who  laid  off  bets  with 
Erickson  ?    You  can  help  and  I  think  you  should. 

Mr.  Allenberg.  I  am  telling  you  from  reputation  of  the  fellows 
that  played  horses  or  books  out  there,  and  I  would  assume  those  would 
be  the  ones  that  would  bet  with  him — Max  Courtney,  fellows  like  Joe 
Boyle — I  don't  know  whether  he  ever  did  or  not,  but  I  know  they  are 
gamblers.  George  Scherman  was  a  bookmaker  out  there,  but  I  don't 
know  to  what  extent  he  might  have  bet  with  Erickson.  They  were 
all  bookmakers. 

Mr.  Halley.  I  would  like  to  turn  to  another  subject  for  the  moment. 
What  is  the  Abe  Allenberg  Contracting  organization — H.  L.  Straus  ? 
Mr.  Allenberg.  There  is  no  such  thing  as  an  Abe  Allenberg  Con- 
tracting Co.    There  is  a  contract  between  Abe  Allenberg  and  H.  L. 
Straus. 

Mr.  Halley.  What  is  that? 

Mr.  Allenberg.  A  contract  in  reference  to  the  sale  of  the  race 
track. 


114  ORGANIZED    CRIME    IN    INTERSTATT:    COMMERCE 

Mr.  Hallet.  What  was  the  price  for  wliich  the  race  track  was  sold? 

Mr.  Allenberg.  It  was  about — a  little  over  a  million  dollars — and 
Erickson  had  20  percent  of  it.  There  was  also — that  is  the  contract 
you  are  talking  about,  that  paid  $80,000  to  John  Patton.  Frank 
Erickson 

Mr.  Halley.  Who  is  John  Patton  ? 

Mr.  Allenberg.  John  Patton  was  one  of  the  owners  of  the  Gables 
Racing  Association  stock. 

Mr.  Hallet.  He  was  in  with  Erickson  in  this  Gables  Eacing 
Association  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  He  represented  the  Capone  syndicate,  didn't  he? 

Mr.  Allenberg.  I  couldn't  say  that. 

Mr.  Halley.  He  comes  from  Chicago? 

Mr.  Allenberg.  Yes. 

Mr.  Halley.  Wasn't  he  one  of  Capone's  men  ? 

Mr.  Allenberg.  I  don't  know.    I  wouldn't  say  that  he  was. 

Mr.  Halley.  Would  you  say  that  he  wasn't  ? 

Mr.  Allenberg.  I  would  snj  he  wasn't  because  I  happen  to  know 
the  man. 

Mr.  Halley.  When  did  you  last  hear  from  Patton? 

Mr.  Allenberg.  I  heard  from  Patton  yesterday. 

Mr.  Halley.  Did  you  get  a  letter  from  him  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  In  what  connection  ? 

Mr.  Allenberg.  In  reference  to  this  contract.  The  balance  of  the 
payment  was  made,  and  I  didn't  have  the  contract  and  I  didn't  know 
where  it  was.  The  lawyers  in  Baltimore  prepared  the  assignment. 
The  contract  is  in  my  name,  and  when  the  assignment  is  executed 
either  the  check  is  made  to  me  and  I  endorse  it  over  to  Patton  as  his 
money — that  must  be  the  contract  with  Straus. 

Mr.  Halley.  Were  you  paid  a  commission  in  connection  with  the 
sale  of  Tropical  Park? 

Mr.  Allenberg.  This  is  the  commission. 

Mr.  Halley.  $36,000? 

Mr.  Allenberg.  No;  it  was  $80,000  all  togethei-,  and  Patton  got 
$16 — Erickson  and  Patton  got  $80,000,  and  they  got  paid  in  propor- 
tion of  20  to  36.  In  other  words.  Erickson  got  five-ninths  and  Patton 
got  four-ninths. 

Mr.  Halley.  Did  you  ever  get  any  part  of  it  from  Erickson  ? 

Mr.  Allenberg.  No,  sir. 

Mr.  Halley.  You  were  still  on  salary  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  What  is  the  American  Totalisator  Co.  ? 

Mr.  Allenberg.  They  are  the  people  that  were  associated  with 
the  purchase  of  this  (rabies  Racing  Association  stock. 

Mr.  Halley.  Who  are  those  ]:)eeple? 

Mr.  Allenberg.  Gurney  Monks,  liis  brother:  H.  L.  Straus.  Straus 
is  dead.  Thei'c  were  two  otlier  partners,  and  I  have  to  deliver 
their 

Mr.  Halley.  Tliat  is  the  conclusion  of  the  Gables  transaction  ? 

Mr.  Allenberg.  That  is  the  last  of  the  Gables  transaction  that  I 
have  anything  to  do  with.     It  terminates  Avith  this. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  115 

]Mr.  Hallky.  Did  you  have  a  tradiiiof  authorization  for  Frank 
Erickson  here  in  Miami  to  trade  at  any  stock-brokerage  housed 

Mr.  ALLENBERci.  I  never  traded  for  him. 

Mr.  Halleyn  Did  you  have  an  authorization  to  do  it^ 

Mr.  Allenberg.  I  may  have  had.    I  don't  remember. 

]Mr.  Halley.  Did  you  have  a  power  of  attorney  from  Erickson? 

Mr.  Allenberg.  1  don't  remember,  Mr.  Halley,  if  I  did. 

Mr.  Halley.  How  did  Erickson  hapi)en  to  invest  in  the  Colonial 
Inn?     Did  that  happen  after  you  came  down  here  lepresenting  him? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halle;y.  In  what  year  did  he  go  into  the  Colonial  Inn? 

Mr.  Allenberg.  I  would  say  that  he  Avent  into  the  Colonial  Inn 
when  Ben  Marden  owned  it. 

Mr.  Halley.  AVhen  was  that  ? 

Mr.  Allenberg.  Not  too  many  years  ago. 

Mr,  Halley.  Before  the  wari' 

Mr.  Allenberg.  Yes,  sir.     I  would  say  before  the  war. 

Mr.  Halley.  Long  before  the  war  or  just  before  the  war;  aronnd 
1940,  would  you  say  ? 

Mr.  Allenberg.  I  am  trying  to — I  think  he  had  an  interest — it  is  a 
matter  of  record. 

Mr.  Halley.  After  you  were  in  Tropical  Park? 

Mr.  Allenberg.  Yes,  sir. 

Mv.  Halley.  And  before  you  sold  out  of  Tropical  Park;  is  that 
right  ? 

Mr.  Allenberg.  That  I  don't  remember. 

Mr.  Halley.  Under  what  circumstances  did  Erickson  go  into  the 
Colonial  Inn  ? 

Mr.  Allenberg.  That  I  don't  know.  I  had  nothing  to  do  with 
that. 

Mr.  Halley.  Did  Briggs  have  a  part  of  Colonial  Inn? 

Mv.  Allenberg.  That  I  don't  know,  except  what  I  have  seen  in  the 
records  that  have  come  out.     I  don't  know"  otherwise. 

Mr.  Halley.  Would  it  be  your  judgment  that  Briggs'  interest  was 
his  own  or  was  he  simply  holding  it  for  Erickson,  knowing  the  rela- 
tion between  the  men  ? 

Mr.  Allenberg.  It  would  seem  to  me  that  Briggs  would  be  on  a  sal- 
ary basis  for  that,  as  far  as  I  can  see. 

Mr.  Halley.  And  if  he  held  an  interest  he  held  it  as  a  trustee  for 
Erickson  ? 

Mr.  Allenberg.  I  would  imagine  that  might  be  the  case.  That  is 
my  supposition,  the  same  as  yours. 

Mr.  Halley.  Adonis  was  in  that,  too,  wasn't  he? 

Mr.  Allenberg.  I  don't  know.    I  have  heard  that  he  w^as. 

Mr.  Halley.  And  Lansky? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  And  Litteral  ? 

Mr.  Allenberg.  Litteral?     I  haven't  heard  he  was. 

Mr.  Halley.  Alo? 

Mr.  Allenberc;.  I  don't  know.     I  haven't  even  heard  about  him. 

Mr.  Halley.  Was  Erickson  also  in  Greenacres? 

Mr.  Allenberg.  I  think  that  Greenacres  and  Colonial  Inn,  as  I 
knew\  was  one  operation.     I  don't  know  whether  it  was  true  or  not. 

Mr.  Halley.  Is  that  also  true  of  Club  Boheme? 


116  ORGANIZED    CRIME',  IN   INTERSTATE    COMMERCE 

Mr.  Allenberg.  Yes.     I  am  saying  not  that  I  know  anything  of  my 
own  knowledge.     I  am  saying  what  my  supposition  is. 

Mr.  Halley.  How  do  these  fellows  operate  here  openly,  Mr.  Allen- 
berg?   Do  they  pay  off  the  authorities? 

Mr.  Allenberg.  Your  guess  is  as  good  as  mine.     I  haven't  any  more 
right  to  my  opinion  than  anybody  else  has. 

Mr.  Halley.  The  sheriff  doesn't  interfere  with  these  operations, 
does  he  ? 
Mr.  Allenberg.  No. 

Mr.  Halley.  Nor  does  the  chief  of  police  ? 

Mr.  Allenberg.  No.     That  doesn't  necessarily  mean  always  that 
they  would  be  paid  off. 

Mr.  Halley.  The  mayor  doesn't  interfere  either  ? 
Mr.  Allenberg.  No. 

Mr.  Halley.  Do  you  know  all  of  these  gentlemen  personally  ? 
Mr.  Allenberg.  Most  of  them. 

Mr.  Halley.  Do  you  have  any  doubt  that  they  know  that  this 
gambling  goes  on  openly  all  over  the  county  ? 

Mr.  Allenberg.  I  would  say  they  would  have  no  doubt  about  the 
fact  that  it  was  going  on. 

Mr.  Halley.  They  would  have  to  be  blind  ? 
Mr.  Allenberg.  Yes. 

Mr.  Halley.  It  goes  on  in  the  open  in  practically  every  hotel? 
Every  hotel  has  a  book  ? 

Mr.  Allenberg.  Yes ;  except  my  hotel. 
Mr.  Halley.  The  Robert  Richter  does  not  ? 
Mr.  Allenberg.  It  did  not  have  it  under  my  operation. 
Mr.  Halley.  Will  you  state  as  a  fact  that  the  Robert  Richter  did 
not  have  a  book? 

Mr.  Allenberg.  That  is  right. 
Mr.  Halley.  Did  the  Boulevard  have  a  book  ? 
Mr.  Allenberg.  No,  sir. 
Mr.  Halley.  How  about  the  Wofford  ? 

Mr.  Allenberg.  The  Wofford  had  no  book  when  I  was  there. 
Mr.   Halley.  Didn't  the  Wofford   originally  have   a   set-up   for 
gambling  ? 

Mr.  Allenberg.  No,  sir.  That  was  a  figment  of  somebody's  imagi- 
nation. The  sheriff  came  over  there  with  the  patrol  wagon  on  the 
theory  that  the  whole  top  floor  was  a  gambling  house.  Tliere  wasn't 
anything  there.     There  were  people  living  there. 

Mr.  Halley.  Just  before  Erickson  decided  to  go  to  the  Colonial 
Inn,  wasn't  it  held  to  be  a  fact  that  the  Wofford  M\as  being  used  for  ' 
gambling? 

Mr.  Allenberg.  No,  sir. 

Mr.  Halley.  Isn't  that  why  he  originally  financed  the  purchase 
for  you  ? 

Mr.  Allenberg.  There  is  not  the  slightest  truth  in  that. 
Mr.  Halley.  Did  you  ever  see  any  gambling  equipment  in  the  hotel  ? 
Mr.  Allenberg.  No,  sir ;  I  never  did. 
Mr.  Halley.  Even  when  you  first  went  into  it  ? 

Mr.  Allenberg.  No,  sir.  Tliose  fellows  used  to  go  upstairs  and 
used  to  play  cards  for  very  heavy  stakes,  such  as  poker  or  gin,  but 
they  played  for  big  money. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  117 

Mr.  Halley.  How  do  you  explain  the  fact  that  the  officials  do  not 
interfere  with  these  operations?  p       ,.  •     i      .         ^i 

Mr  Allenberg.  There  must  be  some  kind  of  political  set-up  they 
are  attached  to.     They  might  put  money  into  the  campaign  funds  or 

something.  ,  ,  ^  •  i      i  i 

The  Chairman.  Well,  Mr.  Allenberg,  you  have  done  considerable 

fixing  yourself ,  haven't  you  ? 

Mr.  Allenberg.  No,  sir,  Senator ;  I  have  not  done  any  hxmg.     i  hat 

is  not m  •  ^r) 

The  Chairman.  You  never  fixed  up  a  public  otlicial '. 

Mr.  Allenberg.  No,  sir;  I  have  not. 

The  Chairman.  This  John  Patton  that  you  referred  to  m  your 
records  a  few  minutes  ago  as  owning  part  of  Tropical  Park  race  track 
with  Erickson — is  that  correct? 

Mr.  Allenberg.  Yes,  sir.  -,■     .    j-         r^i- 

The  Ch\irman.  Wasn't  he  one  of  the  Capone  syndicate  from  Uhi- 
cao-o^     Isn't  that  the  man  with  a  criminal  record  from  Chicago? 

Mr.  Allenberg.  I  do  know  that  he  has  a  criminal  record,  Senator. 

The  Chairman.  He  is  a  notorious  gambler  in  this  section  of  the 

^°Mi\  Allenberg.  I  don't  know  whether  he  is  notorious  as  a  gambler. 

He  is  notorious  in  having  his  name  linked  with  Capone. 
The  Chairman.  He  still  has  a  home  at  the  beach  ? 
Mr.  Allenberg.  Yes,  sir.  ,        o 

The  Chairman.  What  other  interests  does  he  have  here  (         ^ 
Mr.  Allenberg.  He  is  associated  with  the  :Miami  Beach  Kennel 

Club — he  or  his  son.  i       .      ,      -a 

The  Chairman.  I  see  here  that  you  got  to  be  honorary  deputy  sheriti 

of  Dade  County. 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Is  that  from  Jimmy  Sullivan? 

Mr.  Allenberg.  He  is  the  sheriff  of  Dade  County ;  yes,  sir. 

The  Chairman.  I  have  a  card  here  showing  that  you  are  an  honorary 
member.     That  will  be  filed  as  an  exhibit.  . 

(Card  showing  Abe  Allenberg  honorary  deputy  sheriff  received  m 
evidence  as  exhibit  No.  100.     See  appendix,  p.  732. ) 

Mr.  Allenberg.  I  asked  him  for  the  card. 

The  Chairman.  Did  he  know  about  your  association  with  all  these 
gamblers  or  criminals  ?  ,  ,      •  i     i  j 

Mr.  Allenberg.  I  know  more  people  that  have  unblemished  records 
among  those  I  happened  to  have  known  years  ago  and  with  whom  I 
have  been  associated,  but  they  didn't  have  records  at  that  time. 

The  Chairman.  Did  you  ask  Jimmy  Sullivan  to  make  you  a  deputy 
sheriff? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Your  friendship  wath  him  has  been  rather  close 
for  over  quite  some  period  of  time  ? 

Mr.  Allenberg.  I  have  known  him  pretty  well. 

The  Chairman.  And  have  always  supported  him  in  all  of  his  elec- 
tions ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  How  long  have  you  know  him  ? 

Mr.  Allenberg.  'Since  he  ran  for  sheriff  the  first  time. 

The  Chairman.  How  long  has  that  been  ? 


118  lORGANIZED    CRIME:   IN    INTERvSTATE    C'0]VIMERCE 

Mr,  Allenberg.  Eight  years  ago. 

The  Chairman.  Who  is  the  chief  of  police  at  Miami  Beach? 

Mr.  Allenberg.  Albert  Simpson. 

The  Chairman.  Are  you  pretty  close  with  him  ? 

Mr.  Allenberg.  Yes,  sir;  I  know  him  pretty  well.  When  I  say 
"close,"  I  mean  I  know  him. 

The  Chairman.  And  you  supported  him  in  his  election  ? 

Mr.  Allenberg.  Simpson?  No,  sir.  They  are  not  elected.  They 
are  appointed. 

The  Chairman.  How  about  the  mayor  ? 

Mr.  Allenberg.  I  didn't  take  any  part  in  the  mayor's  election. 

The  Chairman.  Who  is  the  mayor  ? 

Mr.  Allenberg.  The  mayor  is  Harold  Turk. 

The  Chairman,  Do  you  know  him  well  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  You  had  the  Florida  Sheriffs'  Association  out  at 
your  hotel,  didn't  you  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  And  you  had  a  special  card  to  the  Florida  Sheriffs' 
Association  in  1948  ^ 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  That  will  be  filed  as  an  exhibit. 

(Courtesy  card,  Florida  Sheriffs'  Association,  Abe  Allenberg, 
received  in  evidence  as  exhibit  No.  101,     See  appendix,  p.  733.) 

Mr.  xVllenberg.  The  Florida  sheriffs  go  to  different  cities  for  their 
convention. 

The  Chairman.  What  isthis  paper ? 

Mr.  Allenberg.  This  letter  is  apparently  a  copy  of  a  letter 

The  Chairman.  Which  you  wrote  to  the  Miami  Beach  Kennel  Club 
dated  June  15,  1941:. 

Will  you  read  the  letter?     It  is  very  short. 

Mr.  Allenberg.  When  they  had  the  convention  they  stayed  at  the 
Wofford  Hotel  June  12  and  13,  and  this  was  for  the  rooms  they  occu- 
pied there. 

The  Chairman.  This  Mr.  Johnston  in  this  letter  is  the  man  who 
owns  a  number  of  dog  tracks  around  here  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  And  does  he  have  this  Kennel  Club  to  whom  this 
letter  is  addressed? 

Mr.  Allenberg.  He  is  associated  with  it. 

The  Chairman.  Why  did  you  send  it  to  that  Kennel  Club  ? 

Mr,  Allenberg,  That  was  his  address. 

The  Chairman.  The  letter  is  addressed  to  the  Kennel  Club,  isn't 
it? 

Mr.  Allenberg.  That  is  correct.  He  might  have  told  me  to  send  the 
bill  to  the  Kennel  Club. 

The  Chairman.  Let  tliat  be  filed  as  an  exhibit. 

(Letter  to  Miami  Beach  Kennel  Chib  re  Wofford  Hotel  bill  received 
in  evidence  as  exhibit  No.  102.     See  appendix,  p.  733. ) 

The  Chairman.  Who  is  Jim  Ponzio? 

Mr.  Allenberg.  A  restaurant  man  from  New  York,  a  personal 
friend  of  mine.     He  has  never  been  down  here. 

The  Chair^nian.  Is  he  in  a  racket  ? 

Mr.  Allenberg.  No ;  he  has  a  diner. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  119 

The  Chairman.  And  this  is  a  letter  that  you  received  from  him? 

Mr.  Allenberg.  Yes,  sir.  These  people  were  making  a  diner  for 
him  and  there  was  trouble  with  the  electrical  work  and  they  had  to  try 
to  have  somebody  fix  it  up  for  him. 

The  Chairman.  Let  us  mark  this  as  "Exhibit  No.  103." 

(Letter  from  Jim  Ponzio  to  Abe  Allenberg  dated  September  27, 
1948,  received  in  evidence  as  exhibit  No.  103.     See  appendix,  p.  734.) 

The  Chairman.  In  this  letter  it  says : 

They  are  having  difficulty  with  the  electrical  inspectors  due  chiefly  to  wiring. 
We  encounter  this  from  time  to  time  and  a  few  dollars  will  fix  everything  up. 
However,  the  chief  electrical  inspector's  name  in  INIiami  is  Knox  and  his  assist- 
ant's name  is  Couseu.  If  you  will  contact  these  two  men  personally  or  have 
your  emissary  in  Miami  take  care  of  them  and  see  that  the  thing  is  accepted, 
it  would  help  things  a  great  deal. 

Mr.  Allenberg.  It  was  not  taken  care  of. 

The  Chairman.  Who  is  your  emissary  in  Miami? 

Mr.  Allenberg.  I  guess  he  means  some  of  my  political  friends  that 
I  have  around  that  might  be  able  to  see  the  thing  was  properly 
straightened  out. 

The  Chairman.  You  get  things  fixed  up  with  your  political  friends? 

Mr.  Allenberg.  There  might  be  a  favor  once  in  a  while.  It  is  not 
a  question  of  fixing. 

The  Chairman.  He  says,  "P.  S.  I  understand  Senator  Pepper  is 
the  man  to  give  the  O.  K." 

Mr.  Allenberg.  Pepper  didn't  know  anything  about  it. 

The  Chairman.  Did  you  ask  Senator  Pepper  about  this  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  How  did  he  understand  that? 

Mr.  Allenberg.  Maybe  Kullman,  the  people  who  built  the  diner, 
told  them  that.  They  just  used  the  man's  name  and  didn't  know  what 
they  were  talking  about. 

The  Chairman.  You  apparently  contributed  $2,500  to  the  Demo- 
cratic National  Committee  on  March  31,  1947;  is  that  correct? 

Mr.  Allenberg.  I  sold  10  tickets  to  the  National  Democratic  Com- 
mittee to  Frank  Erickson. 

The  Chairman.  You  sold  10  tickets? 

Mr.  Allenberg.  Yes,  sir ;  I  sold  10  tickets. 

The  Chairman.  Where  was  the  dinner? 

Mr.  Allenberg.  Honey  Plaza  Hotel. 

The  Chairman.  Is  that  what  that  $2,500  is  for  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  What  favor  were  you  trying  to  get  out  of  the  Demo- 
cratic National  Committee? 

Mr.  Allenberg.  Nothing  in  particular. 

The  Chairman.  Let's  make  that  a  part  of  the  record. 

(Letter  dated  May  6,  1947,  from  George  M.  Killion,  received  in 
evidence  as  exhibit  No.  104.     See  appendix,  p.  734.) 

Mr.  Allenberg.  There  was  a  lot  money  raised  down  here. 
Senator. 

The  Chairman.  Did  Frank  Erickson  attend  the  dinner  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Did  you  attend  the  dinner? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Did  Frank  Costello  attend  the  dinner? 

Mr.  Allenberg.  I  don't  think  so. 

68958— 50— pt.  1 9 


120  ORGANIZED   ORlIMEl  IN   INTE'RSTATE    COMMERCE 

The  Chairman.  Who  was  the  principal  speaker  at  the  dinner? 

Mr.  Allenberg.  I  don't  remember. 

The  Chairman.  Did  you  contribute  anything  to  the  Kepublican 
National  Committee? 

Mr.  Allenberg.  No,  sir.    They  didn't  have  any  dinner. 

The  Chairman.  Have  you  contributed  to  the  Kepublican  National 
Committee  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Only  the  Democratic? 

Mr.  Allenberg.  Yes,  sir.  It  happened  to  be  one  of  those  things 
that  came  along  and  there  was  a  great  hurrah  made  about  it. 

The  Chairman.  Why  didn't  Frank  Erickson  buy  anything  in  his 
own  name  ? 

Mr.  Allenberg.  I  was  the  one  that  sold  it. 

The  Chair]man.  You  were  the  seller  of  the  tickets  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Who  got  you  to  sell  the  tickets?  Who  spoke  to 
you  about  it  ? 

Mr.  Allenberg.  A.  C.  Carrara,  of  the  Democratic  national  treas- 
urer's office. 

The  Chairman.  And  he  wrote  you  and  asked  you  to  sell  some 
tickets  ? 

Mr.  Allenberg.  He  was  doAvn  here. 

The  Chairman.  Did  he  stay  at  the  Wofford  Hotel? 

jMr.  Allenberg.  I  don't  think  so. 

The  Chairman.  Who  is  Ralph  or  Raphael  W.  Alpher? 

Mr.  Allenberg.  He  was  a  lawyer  in  New  York. 

The  Chairman.  Here  is  a  letter  from  Ralph  W.  Alpher  dated 
August  4,  1948.  He  signed  it  "Ralph''  so  he  must  be  a  good  friend 
of  yours. 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Let's  make  that  letter  an  exhibit. 

(Letter  dated  August  4,  1948,  signed  "Ralph"  received  in  evidence 
as  exhibit  No.  105.     See  appendix,  p.  734.) 

The  Chairman.  Who  is  the  Mr.  Perlman  or  Pearlberg  mentioned 
in  this  letter  ? 

Mr.  Allenberg.  He  is  a  man  that  lives  here  in  town. 

The  Chairman.  What  is  his  first  name  ? 

Mr.  Allenberg.  Jack. 

The  Chairman.  He  talks  about  a  contact  with  the  Governor-elect. 
Is  that  Warren  ? 

ISIr.  Allenberg.  Yes,  sir. 

The  Chairman.  Did  you  investigate  this  matter  and  find  out 
about  it  ? 

Mr.  Allenberg.  No,  sir ;  I  did  not. 

The  Chairman.  What  is  your  association  with  Mr.  Warren  ? 

Mr.  Allenberg.  I  know  Mr.  Warren  very  well. 

The  Chairman.  Did  you  contribute  to  his  campaign? 

Mr.  Allenberg.  No,  sir;  I  did  not,  except  in  a  very  small  way; 
maybe  a  couple  of  hundred  dollars. 

The  Chairman.  In  Tennessee  a  couple  of  hundred  dollars  is  a  pretty 
substantial  contribution.  How  mucli  did  you  contribute  to  Governor 
Warren's  campaign  ? 

Mr.  Allenberg.  About  $300. 


ORGANIZED    CRIME    IN    INTERSTATE   COMMERCE  121 

The  Chairman.  Do  you  want  to  think  about  that  again? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Who  did  you  contribute  it  through? 

Mr.  Allenberg.  Through  myself. 

The  Chairman.-  Who  did  you  contribute  it  through  ?  To  whom  did 
you  give  it? 

Mr.  Allenberg.  It  went  out  as  expenses.     I  bought  signs. 

The  Chairman.  You  just  gave  $300  and  you  paid  for  signs  and 
things  of  that  sort? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Did  you  send  something  to  his  campaign  manager 
here  in  Dade  County  ? 

Mr.  Allenberg.  No,  sir ;  because  I  helped  campaign  myself  over  on 
the  Beach. 

The  Chairman.  You  were  a  part  of  the  management  yourself  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Did  you  collect  money  for  him  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  How  much  did  you  collect  ? 

Mr.  Allenberg.  $5-,  $6-  or  $8,000.     I  just  don't  remember  offhand. 

The  Chairman.  There  is  quite  a  difference  between  $5,000  and 
$8,000. 

Mr.  Allenberg.  I  know,  but  I  haven't  computed  it,  Senator.  I 
never  figured  it. 

The  Chairman.  Do  you  still  have  your  records  ? 

Mr.  Allenberg.  Yes ;  I  have  some  of  the  records  here. 

The  Chairman.  To  whom  did  you  turn  that  over  ? 

Mr.  Allenberg.  That  went  to  the  expenses  of  the  campaign. 

The  Chairman.  Were  you  his  manager  over  on  the  Beach? 

Mr.  Allenberg.  No,  sir ;  I  was  the  treasurer. 

The  Chairman.  How  about  Frank  Erickson?  Did  he  contribute, 
too? 

Mr.  Allenberg.  No,  sir ;  he  had  nothing  to  do  with  it. 

The  Chairman.  How  about  Little  Augie  ? 

Mr.  Allenberg.  Nothing. 

The  Chairman.  Or  any  other  gamblers.  .  Did  you  get  any  money 
out  of  them  ? 

Mr.  Allenberg.  Never  got  any  money  from  any  of  those  fellows. 
Whatever  it  is,  I  have  a  record  of  it  here. 

The  Chairman.  Mr.  Allenberg,  how  old  are  you  ? 

Mr.  Allenberg.  I  will  be  59  on  the  25th  of  October. 

The  Chairman.  Are  you  married? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  How  much  family  do  you  have  ? 

Mr.  Allenberg.  Wife  and  two  children. 

The  Chairman.  Where  were  you  born? 

Mr.  Allenberg.  Portland,  Oreg. 

The  Chairman.  Did  you  go  to  school  out  there  ? 

Mr.  Allenberg.  No,  sir.     I  went  to  school  in  New  York. 

The  Chairman.  You  and  your  family  moved  to  New  York? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  You  are  a  lawyer? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  ^-NHiere  did  you  study  law  ? 


122  ORGANIZED   CHIMEi  IN   INTERSTATE    COMMERCE 

Mr.  Allenberg.  New  York  Law  School. 

The  Chairman.  Where  did  you  practice  in  New  York  ? 

Mr.  Allenberg.  I  practiced  at  115  Broadway  and  165  Broadway. 

The  Chairman.  Who  did  you  practice  with  at  115  Broadway? 

Mr.  Allenberg.  House,  Grossman,  and  Vorhouse. 

The  Chairman.  And  at  165  Broadway? 

Mr.  Allenberg.  By  myself,  and  at  1482  Broadway  I  practiced  by 
myself.     That  is  up  at  Forty-second  Street. 

The  Chairman.  And  you  represented  Erickson  when  you  were  in 
New  York? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  How  long  did  you  represent  him  up  there? 

Mr.  Allenberg.  About  2  years,  I  think. 

The  Chairman.  How  about  these  other  people  that  stayed  at  your 
hotel  from  New  York,  part  of  the  so-called  New  York  syndicate  or 
gang? 

Mr.  Allenberg.  Senator,  I  never  represented  any  of  them. 

The  Chairman.  What  difficulty  was  it  that  you  got  into  in  the 
practice  of  law? 

Mr.  Allenberg.  I  didn't  get  into  any  difficulties. 

The  Chairman.  You  didn't? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Are  you  still  a  member  of  the  New  York  Bar? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Didn't  have  any  disbarment  proceedings? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  And  did  you  have  a  successful  practice  when  you 
came  down  here? 

Mr.  Allenberg.  Fair. 

The  Chairman.  Erickson  got  you  to  come  down  ? 

Mr.  Allenberg.  I  came  down  here  representing  him;  yes,  sir. 

The  Chairman.  And  you  just  pulled  up  from  the  law  practice? 

Mr.  Allenberg.  It  didn't  just  come  about  that  way.  When  I  came 
down  here,  it  was  part  of  the  agreement  that  somebody  was  to  counter- 
sign the  checks  of  the  company  until  the  mortgage  was  paid  back, 
and  he  asked  me  if  I  was  agreeable  to  staying  down  here  for  a  few 
months,  and  the  first  thing  I  knew  I  took  over  the  handling  of  all 
the  business  of  the  track,  so  it  didn't  take  long  until  I  was  manager 
of  the  race  track,  and  after  everything  else,  I  decided  to  stay  down 
here. 

The  Chairman.  Wouldn't  you  consider  yourself  in  this  situation; 
that  you  are  kind  of  a  front  for  the  gang  ever  since  that  time? 

Mr.  Allenberg.  I  never  tliought  so,  Senator. 

The  Chairman.  In  other  words,  when  they  want  to  have  some 
operations  come  in  in  Miami  or  Miami  Beach  or  in  tliis  part  of  Florida, 
you  get  things  arranged  for  them  and  you  are  the  one  they  get  in 
touch  with? 

Mr.  Allenberg.  No,  sir ;  that  is  not  so. 

The  Chairman.  How  do  you  account  for  the  fact  that  so  many  of 
these  people  stayed  at  your  hotel  and  when  you  went  to  another  hotel 
they  moved  with  you? 

Mr.  Allenberg.  Not  so  many.  Only  the  men  in  association  with 
Erickson  came  to  my  hotel.     Nobody  else  came,  and  at  the  Hotel 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  123 

WofFord  they  cam«  there  because  of  those  fellows  that  were  there — 
King  and  Carf  ano — that  is  why  they  came  there. 

The  CiiAiRMAX.  You  didn't  know  King  was  a  criminal  when  you 
went  into  partnership  with  him? 

Mr.  Allenberg.  No,  sir;  I  did  not. 

The  Chairman.  When  you  found  out,  did  you  terminate  the 
partnership  ? 

Mr.  Allenberg.  As  soon  as  I  could ;  I  did. 

The  Chairman.  It  had  been  well  known  for  quite  some  time, 
hadn't  it? 

Mr.  Allenberg.  Not  generally ;  no. 

The  Chairman.  He  was  a  pretty  big  criminal  ? 

Mr.  Allenberg.  No,  sir.  This  is  1945-46  when  I  got  out  of  the 
Wofford  Hotel. 

The  Chairman.  When  Erickson  made  his  first  trip  to  Florida,  he 
looked  around  and  guided  these  people  to  you  for  you  were  his  lawyer 
and  he  wouldn't  leave  them  in  the  dark. 

Mr.  Allenberg.  These  men  didn't  all  come  in  there  at  once.  They 
lived  there  at  different  times  in  the  season.  Maybe  in  February  there 
might  be  10  or  15.  King  was  supposed  to  have  had  a  good  reputation 
so  far  as  I  was  concerned,  from  the  inquiries  I  made  about  him. 

The  Chairjvian.  Where  did  you  make  those  inquiries?  Did  you 
ask  Erickson  if  he  had  heard  of  King  ? 

Mr.  Allenberg.  I  didn't  know  King  when  I  went  there. 

The  Chairman.  When  did  you  first  learn  who  he  was? 

Mr.  Allenberg.  I  didn't  learn  anything  about  King  until  maybe 
a  couple  of  years  ago  and  these  gentlemen  started  to  make  revelations 
about  him. 

The  Chairman.  Didn't  you  know  these  people  were  all  racketeers? 

Mr.  Allenberg.  No,  sir.  I  knew  they  were  in  the  gambling  busi- 
ness, but  I  didn't  know  they  were  racketeers. 

The  Chairman.  You  think  it  was  just  a  coincidence,  then,  that  they 
all  gathered  at  the  Boulevard  Hotel  ? 

Mr.  Allenberg.  They  didn't  gather  in  the  Boulevard  Hotel.  You 
mean  the  Wofford. 

The  Chairman.  I  mean  the  Wofford  Hotel. 

Mr.  Allenberg.  It  is  not  a  coincidence.  They  were  drawn  there 
by  those  other  two  men  that  I  was  associated  with,  and  that  I  didn't 
know. 

The  Chairman.  You  knew  that  they  all  gambled  up  there  together 
for  tremendous  stakes,  didn't  you  ? 

Mr.  Allenberg.  Occasionally,  they  would. 

The  Chairman.  How  much  would  the  stakes  be  in  those  games  ? 

Mr.  Allenberg.  Senator,  it  might  run  from  $500  to  $5,000.  I 
never  saw  a  game  that  went  on  up  there.     I  never  went  into  a  room. 

The  Chairman.  Was  that  poker  ? 

Mr.  Allenberg.  It  could  be  poker  or  gin. 

The  Chairman.  All  bunched  around  there  ? 

Mr.  Allenberg.  Erickson  didn't  stay  around  there. 

The  Chairman.  "Wlio  were  some  of  the  boys  ? 

Mr.  Allenberg.  Carfano,  King,  and  some  of  these  other  fellows 
whose  names  and  pictures  you  have  there. 

The  Chairman.  Did  Aclonis  hang  around  ? 

Mr.  Allenberg.  Not  much ;  only  occasionally. 


124  lORGANIZED    CRlIME    IN    INTEHSTATE    COMMERCE 

The  Chairman.  Did  you  have  a  special  room  for  him  ? 

Mr.  Allenberg.  No,  sir ;  we  did  not. 

The  Chairman.  Massei  ? 

Mr.  Allenberg.  He  never  lived  at  the  hotel. 

The  Chairman.  Did  he  come  to  see  the  boys  ? 

Mr.  Allenberg,  Once  in  a  while  he  would  come  around. 

The  Chairman.  Mr.  Halley  ? 

Mr.  Halley.  Do  you  know  that  Massei  is  running  the  dope  racket 
i  n  Miami  ?    Did  you  ever  hear  that  ? 

Mr.  Allenberg.  No,  sir ;  I  never  heard  it.  I  don't  know  that  there 
is  any  dope  racket  in  Miami  or  Miami  Beach. 

Mr.  Halley.  There  is  dope  sold  in  Miami  ? 

Mr.  Allenberg.  If  there  is  I  don't  know  it. 

Mr.  Halley.  You  don't  Imow  Massei  has  anything  to  do  with  it  ? 

Mr.  Allenberg.  No,  sir ;  I  don't. 

The  ChAirman.  Who  all  have  we  got  in  these  games  ? 

Mr.  Allenberg.  I  am  just  surmising,  telling  you  the  fellows  that 
sat  around. 

The  Chairman.  Let's  see.  "We  first  have  Massei,  Carfano,  who 
else? 

Mr.  Allenberg.  King. 

The  Chairman.  Wlio  else? 

Mr.  Allenberg.  I  don't  know,  Senator,  who  might  play  cards. 

The  Chairman.  Joe  Adonis  ? 

Mr.  Allenberg.  No,  he  was  not  around  the  hotel. 

The  Chairman.  Let's  get  some  more  names  in  those  big  games. 
You  would  know  who  was  in  them.     Was  Erickson  ? 

Mr.  Allenberg.  No,  sir ;  he  never  played  with  those  men.  He  was 
not  friendly  with  those  men. 

The  Chairman.  Who  was  his  auditor  ? 

Mr.  Allenberg.  They  didn't  gamble  at  cards.  These  men  that  I 
have  identified 

The  Chairman.  Of  the  people  you  say  were  guests  at  your  hotel, 
would  most  of  them  play  in  the  games? 

Mr.  Allenberg.  I  imagine  most  of  them  would  gamble. 

The  Chairman.  Do  you  know  that? 

Mr.  Allenberg.  I  don't  know.     That  was  my  supposition. 

The  Chairman.  That  is  all  from  me  right  now. 

Mr.  Halley.  May  I  ask  one  question :  Do  you  know  Bill  Johnston  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  He  just  left  Miami  and  is  reported  to  have  gone  to 
Europe ;  do  you  know  that  ? 

Mr.  Allenberg.  Yes,  sir. 

Mr.  Halley.  He  is  reported  to  have  been  quite  a  fixer;  did  you 
ever  know  that  ? 

Mr.  Allenberg.  No,  sir. 

Mr.  Halley.  It  is  stated  that  he  is  the  man  who  had  arranged  the 
games  that  were  run  without  being  shut  down.  Had  you  ever  heard 
that? 

Mr.  Allenberg.  No,  sir. 

Mr.  Halley.  Not  even  by  reputation  ? 

Mr.  Allenberg.  No,  sir. 

Mr.  Halley.  Did  you  ever  give  a  party  or  dinner  at  which  A.  C. 
Caraway  and  Bill  Johnston  and  a  lot  of  other  people  were  enter- 


ORGANIZED    CRIME;   IN    INTERSTATE    COMMERCE  125 

tainecl  by  you  ?  Also  by  Straus,  J.  D.  Thornton,  possibly  in  connec- 
tion with  that  Democratic  dinner  ? 

Mr.  Allenberg,  Might  have,  but  I  don't  remember.     I  don't  recall. 

Mr.  Halley.  Will  this  memorandum  refresh  your  recollections  ? 

Mr.  Allenberg.  These  are  just  people  that  I  was  to  see.  I  was  on 
a  trip.  This  man  was  in  Detroit  and  I  was  going  to  Detroit.  These 
are  names  of  people  I  know. 

E.  E.  Hoff  is  an  automobile  dealer.  H.  L.  Straus  was  in  Baltimore, 
and  Caraway — I  might  want  to  drop  them  postal  cards  or  might  want 
to  stop  and  see  them  or  get  in  touch  with  them  when  I  get  away. 

Mr.  Halley.  Who  did  you  call  on  when  you  got  to  New  Orleans  ? 

Mr.  Allenberg.  I  have  never  been  in  New  Orleans  for  more  than  2 
-days  in  my  life. 

The  Chairman.  Who  did  you  call  on  there  ? 

Mr.  Allenberg.  The  Roosevelt  Hotel. 

The  Chairman.  What  did  you  go  over  there  for  ? 

Mr.  Allenberg.  I  was  on  my  way  to  California,  driving  through. 

The  Chairman.  You  didn't  go  to  New  Orleans  and  come  back  here 
and  then  go  on  to  New  York  on  one  occasion  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Do  you  know  the  gambling  interests  in  New 
Orleans  ? 

Mr.  Allenberg.  I  have  heard  about  it. 

The  Chairman.  Do  you  know  any  of  them  ? 

Mr.  Allenberg.  Kastel  and  Costello  were  supposed  to  be  there. 

The  Chairman.  Do  you  know  Phil  Kastel  ? 

Mr.  Allenberg.  Yes,  sir. 

The  Chairman.  Where  did  you  know  him  ? 

Mr.  Allenberg.  He  used  to  come  to  the  Wofford  Hotel. 

The  Chairman.  Did  you  see  him  when  you  were  in  New  Orleans  ? 

Mr.  Allenberg.  I  went  there  the  night  I  was  there  and  there  was 
once  I  saw  him.  I  was  there  two  or  three,  but  I  didn't  see  him.  I 
didn't  see  him  there.   I  went  to  the  club. 

The  Chairman.  Does  he  see  you  when  he  comes  here  ? 

Mr.  Allenberg.  I  haven't  seen  liim  in  years. 

The  Chairman.  Do  you  know  Mickey  Cohen  ? 

Mr.  Allenberg.  No,  sir. 

The  Chairman.  Is  there  anything  else,  Mr.  Halley  ? 

Mr,  Halley.  I  have  nothing  further. 

The  Chairman.  That  is  all,  Mr.  Allenberg. 

Mr.  Allenberg.  I  want  you  to  know  that  I  have  never  been  in  any 
•difficulties  and  I  am  not  the  man  they  come  to  in  this  area  to  do  any 
fixing  or  for  any  gambling.    I  don't  gamble  myself. 

The  Chairman.  The  record  shows  what  it  shows. 

Mr.  Allenberg.  These  people  stopped  at  my  hotel. 

The  Chairman.  And  they  are  some  of  the  people  you  have  described 
to  the  committee. 

I  would  say  offhand  that  the  people  you  have  been  associating  with 
make  a  pretty  bad  appearance. 

Mr.  Allenberg.  It  is  bad,  but  I  didn't  know  their  reputations. 

The  Chairman.  You  know  their  reputations  now,  don't  you? 

Mr.  Allenberg.  Yes,  sir.  For  instance,  you  told  me  about  the 
Teepee  Grill 


126  ORGANIZED    CRIIMEI   IN    INTERSTATE    COMMERCE 

The  Chairman.  We  are  very  anxious  to  see  whether  there  is  any 
improvement  in  the  situation  down  here. 

1  want  to  say  frankly  that  I  think  a  good  deal  of  the  distress  here 
is  of  the  kind  that  you  have  aided  and  abetted  and  you  have  been  a 
pretty  close  cog  in  the  wheels  of  a  good  deal  of  it. 

What  is  going  to  happen  in  the  future  is  going  to  be  a  matter  of  a 
great  deal  of  interest. 

That  is  all.    Thank  you. 

TESTIMONY  OF  WALTER  CLARK,  SHERIFF,  BROWARD 
COUNTY,  FLA. 

The  Chairman.  Do  you  solemnly  swear  that  the  testimony  that  you 
will  give  the  committee  will  be  the  truth,  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God  ? 

Mr.  Clark.  I  do. 

The  Chairman.  I  have  one  or  two  preliminary  questions  I  want 
to  ask,  Sheriff  Clark. 

What  is  your  first  name  ? 

Mr.  Clark.  Walter. 

The  Chairman.  And  you  live  at  Fort  Lauderdale  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Is  that  Broward  County  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  How  old  are  you.  Sheriff? 

Mr.  Clark.  I  am  46. 

The  Chairman.  When  were  you  first  elected  sheriff  ? 

Mr.  Clark.  In  1932. 

The  Chairman.  In  1932? 

Mr.  Clark.  I  was  elected  to  the  State  office  in  1933. 

The  Chairman.  You  have  been  sheriff  how  often  since  that  time  ? 

Mr.  Clark.  All  the  time. 

The  Chairman.  Ever  since  1933  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  What  did  you  do  before  you  were  the  sheriff? 

Mr,  Clark.  I  was  in  the  meat  business ;  in  the  grocery  business. 

The  Chairman.  Sheriff,  under  the  laws  of  Florida,  in  connection 
with  illegitimate  or  illegal  gaming  and  operations  outside  of  the  law, 
what  is  the  law  of  Florida  about  your  duties  as  to  closing  them  up? 
Do  you  have  to  wait  until  you  get  a  notice  or  complaint,  or  is  it  your 
responsibility   to  go  out  and  do  something  about  it  on  your  own  ? 

Mr.  Clark.  If  we  have  a  complaint  or  anything  like  that,  we  are 
supposed  to  look  after  it. 

The  Chairman.  In  the  absence  of  complaints,  if  you  know  or  have 
reason  to  believe  that  certain  transactions  are  taking  place  that  are 
illegal,  is  it  your  duty  to  do  it? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Sheriff,  we  have  abundant  testimony  that  over  a 
period  of  quite  a  number  of  years  numbers  of  places  have  been  oper- 
ating openly  in  your  county  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  And  they  are  being  operated  by  i>eople  who  are 
operating  in  interstate  commerce  by  bookmaking  and  laying  off  bets; 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  127 

certain  members  of  gangs  who  have  come  down  and  are  operating  in 
vour  county.    Have  you  had  knowledge  of  those  matters  2 

Mr.  Clark.  I  haven't  had  any  knowledge  of  any  gambling. 

The  Chairman.  I  mean  of  gambling  operations. 

Mr.  Clark.  I  have  no  knowledge  of  that. 

The  Chairman.  Is  the  Colonial  Inn  in  your  county  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Is  that  operating  now  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Is  Greenacres  operating? 

Mr.  Clark.  No,  sir. 

The  Chairman.  How  long  did  it  operate? 

Mr.  Clark.  They  operated  some  several  seasons. 

The  Chairman.  Does  the  record  show  about  when  Greenacres 
operated? 

Mr.  Halley.  Greenacres  operated  up  to  about  1947 ;  didn't  it  ?  Is  it 
operating  today  ? 

Mr.  Ci.ark.  No. 

The  Chairman.  Did  it  close  down  when  the  season  was  over? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Sheriff,  our  question  is :  If  Greenacres  operated  last 
season,  the  season  before,  and  the  season  before  and  prior  to  that  time, 
and  if  Colonial  Inn  operated,  how  come  you  let  them  operate? 

Mr.  Clark.  I  was  elected  on  the  liberal  ticket,  and  the  people  want  it 
and  they  enjoy  it. 

The  Chairman.  So,  you  just  nod  your  head  or  wink  your  eyes  at 
them  ? 

Mr.  Clark.  I  let  them  have  what  they  want  for  the  tourists  down 
here. 

Mr.  Halley.  What  do  you  mean  by  the  "liberal  ticket"?  Did  it 
say  on  the  ballot  that  you  were  going  to  allow  gambling  to  go  on  ? 

Mr.  Clark.  No. 

Mr.  Halley.  Who  are  the  people  that  wanted  the  gambling  ?  What 
do  you  mean  by  that? 

Mr.  Clark.  The  majority  of  the  people  expressed  their  opinions. 

Mr.  Halley.  How  did  they  know  that  yours  was  a  liberal  ticket? 
Don't  you  think  they  may  have  thought  that  you  were  going  to  run  an 
honest  administration  and  stop  things  that  were  against  the  law? 
How  did  the  majority  of  the  people  know  that  yours  was  the  liberal 
ticket  ?  Did  you  go  around  in  your  campaigns  and  tell  everybody  you 
were  for  open  gambling? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  What  do  you  mean  by  being  elected  on  a  liberal  ticket. 
I  think  that  kind  of  answer  is  an  insult  to  the  committee. 

Mr.  Clark.  The  people  know  that  I  am  more  or  less  liberal-minded. 

Mr.  Halley.  What  people  know  it?  Do  the  people  who  have  a  job 
and  work  and  pay  taxes  and  who  don't  go  to  expensive  gambling 
houses  know  it  ? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.  How  do  they  know  it?  Do  you  advertise  that  you 
don't  enforce  the  law? 

Mr.  Clark.  I  don't  do  that. 

Mr.  Halley.  Did  you  ever  take  before  the  people  the  issue  whether 
jou  should  allow  gambling  to  be  open  or  closed? 


128  ORGANIZED    CRIME'  IN   INTERSTATE    COMMERCE 

Mr.  Clark.  The  newspapers  more  or  less  carried  it  as  an  issue  up 
there. 

Mr.  Hallet.  At  the  election  or  before  the  election  ? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.  And  you  were  elected  anyhow  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Do  you  make  any  report  to  the  attorney  general 
of  Florida  as  to  what  the  places  are  that  are  operating  ? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  Did  he  call  on  you  to  close  down  any  of  these  places — 
I  mean  the  attorney  general  of  Florida  ? 

Mr.  Clark.  He  called  on  me  this  winter. 

Mr.  Halley.  Did  you  close  them  down  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  When? 

Mr.  Clark.  I  don't  know  what  date  it  was.  Somewhere  around  the 
first  of  the  year,  I  believe. 

The  Chairman.  Are  Roscoe  machines — these  one-armed  bandits — 
illegal  under  the  Florida  law? 

Mr.  Clark.  No,  sir. 

The  Chairman.  They  are  not  in  public  places. 

Mr.  Clark.  I  don't  laiow  what  you  mean. 

The  Chairman.  Wliere  you  put  a  quarter  in,  pull  a  lever,  and  you 
might  get  something  back  and  you  might  not. 

Mr.  Clark.  In  money  or  the  horse  races  ? 

The  Chairman.  No  ;  I  am  talking  about  the 

Mr.  Clark.  No;  they  are  not. 

The  Chairman.  They  are  illegal. 

Mr.  Clark.  Yes ;  they  are  illegal. 

The  Chairman.  Your  county  is  pretty  full  of  them  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  In  the  stores  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Hotels? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Do  you  know  Frank  Erickson  ? 

Mr.  Clark.  No,  sir ;  I  don't 

The  Chairman.  Never  met  him? 

Mr.  Clark.  Never  have ;  no,  sir. 

The  Chairman,  Do  you  know  any  of  the  fellows  that  operate  the 
Colonial  Inn  or  Greenacres? 

Mr.  Clark.  I  know  Jack  Lansky. 

The  Chairman.  You  knew  what  he  was  doing  ? 

Mr.  Clark.  I  knew  he  was  running  a  place  down  there. 

The  Chairman.  How  long  have  you  known  him  ? 

Mr.  Clark.  Since  he  has  been  running  it  down  here. 

The  Chairman.  Sheriff,  do  these  people  pay  you  off? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Do  they  contribute  to  your  campaign  ? 

Mr.  Clark.  They  contribute  to  tlie  campaign. 

The  Chairman.  Did  Jack  Lansky? 

Mr.  Clark,  The  boys  in  the  south  end  handle  the  campaign. 

The  Chairman.  What  do  you  mean  "the  boys  in  the  south  end"  ? 


ORGANIZED    CRIME   IN    INTERSTATE    COMMERCE  129 

Mr.  Clark.  I  have  friends  down  there,  and  they  go  to  these  fellows 
and  they  contribute  to  the  campaign. 

The  Chairman.  How  much  do  they  contribute  ? 

Mr.  Clark.  I  don't  know.     I  never  asked  and  never  looked  to  see. 

The  Chairman.  Who  is  the  head  of  your  organization  in  the  south 
end? 

Mr.  Clark.  Mr.  Lewis  handles  that. 

The  Chairman.  What  is  his  first  name  ? 

Mr.  Clark.  Charlie. 

The  Chairman.  Is  he  the  fellow  that  got  the  money  ? 

Mr.  Clark.  I  suppose  it  was ;  yes. 

The  Chairman.  Do  you  have  any  idea  how  much  he  got? 

Mr.  Clark.  No  ;  I  don't  know. 

The  Chairman.  $500,  $10,000? 

Mr.  Clark.  I  don't  know. 

The  Chairman.  Don't  you  get  around  when  you  are  preparing  your 
campaign  and  see  how  much  you  are  going  to  need  and  sort  of  figure 
where  you  are  going  to  get  it  ? 

Mr.  Clark.  It  all  depends  on  what  it  is  going  to  cost. 

The  Chairman.  What  did  your  campaign  cost  you?  What  did 
you  spend  on  your  last  campaign  ? 

Mr.  Clark.  I  don't  know  what  we  did  spend. 

The  Chairman.  You  have  an  idea.  Sheriff,  of  what  you  spent. 

Mr.  Clark.  We  had  this  campaign  committee,  and  I  never  asked 
them  what  they  spent.     I  don't  know  what  they  did  spend. 

The  Chairman.  You  have  amassed  a  good  deal  of  property; 
haven't  you  ? 

Mr.  Clark.  Not  so  very  much ;  no,  sir. 

The  Chairman.  Don't  you  own  quite  a  number  of  business  prop- 
erties in  Fort  Lauderdale  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  How  many  ? 

Mr.  Clark.  I  got  my  home  where  I  live.     I  got  a  little  farm. 

The  Chairman.  How  little  a  farm  ? 

Mr.  Clark.  About  100  acres. 

The  Chairman.  Don't  you  own  a  business  property  in  Fort  Lauder- 
dale, or  an  interest  in  one  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  What  is  that? 

Mr.  Clark.  It  is  a  garage  and  filling  station. 

The  Chairman,  On  the  main  street? 

Mr.  Clark.  On  the  Federal  Highway ;  yes,  sir. 

The  Chairman.  Who  is  your  associate  in  that  ? 

Mr.  Clark.  My  brother. 

The  Chairman.  What  is  his  first  name? 

Mr.  Clark.  Robert. 

The  Chairman.  How  much  did  you  pay  for  that  business  ? 

Mr.  Clark.  I  would  have  to  check  with  him. 

The  Chairman.  About  how  much?     $25,000?     $50,000? 

Mr.  Clark.  I  guess  around  maybe  $30,000.     I  couldn't  be  positive. 

The  Chairman.  Do  you  own  any  other  business  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Or  any  interest  in  any  other  business? 

Mr.  Clark.  I  cot  a  little  farm  land. 


130  ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE 

The  Chairman.  How  much  did  you  pay  for  that? 

Mr.  Clark.  $16  an  acre. 

The  Chairman.  How  many  acres  ? 

Mr.  Clark.  I  got  about  200  acres. 

The  Chairman.  About  $32,000  ? 

Mr.  Clark.  No. 

The  Chairman.  $3,200;  is  that  what  you  paid  for  it? 

Mr.  Clark.  Something  like  that. 

Tlie  Chairman.  Is  it  an  orange  grove  ? 

Mr.  Clark.  No;  just  faiTti  land. 

The  Chairman.  Do  you  have  any  other  business  interest? 

Mr.  Clark.  Farm  land — nothing  but  farm  land  and  stuff  like 
that. 

The  Chairman.  What  is  this  "stuff  like  that"  ?  You  would  know 
if  you  had  some  other  business  interests.  You  said  you  had  your 
home,  half  an  interest  in  a  filling  station,  and  you  have  200  acres  of 
farm  land  for  which  you  paid  $16  an  acre,  and  what  else? 

Mr.  Clark.  I  got  some  stock  in  Rib-N-Rite  Co. 

The  Chairman.  What  type  of  company  is  that? 

Mr.  Clark.  They  started  making  attachments  for  typewriters. 

The  Chairman.  Is  it  an  operating  concern  now  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Has  it  gone  out  of  business? 

Mr.  Clark.  It  is  in  the  hands  of  the  court  now. 

The  Chairman.  In  the  hands  of  a  receiver  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Do  you  own  any  other  real  estate  ? 

Mr.  CL.VRK.  I  own  a  lot.  I  would  have  to  correct  the  record ;  maybe 
one  or  two  little  lots. 

The  Chairman.  Are  they  valuable  lots  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Not  valuable  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  How  about  any  buildings  ?  Do  you  own  any  build- 
ings ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Wliat  is  the  salary  of  the  sheriff  of  Broward 
County? 

Mr.  Clark.  $7,500  a  year. 

The  Chairman.  Do  you  make  anything  extra  on  fees?  Or  is  it  a 
straight-salary  basis  ? 

Mr.  Clark.  Fee  basis. 

The  Chairman.  In  addition  to  that,  do  you  get  a  certain  amount  for 
fees  ? 

Mr.  Clark.  I  get  all  over  a  certain  amount  in  fees. 

The  Chairman.  Plus  the  $7,500? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  What  does  the  total  salary  usually  run  then  ?  The 
salary,  the  fees,  and  the  amounts  you  make  out  of  the  office? 

Mr.  Clark.  I  would  have  to  check  my  records. 

The  Chairman.  Over  an  average  year  you  have  some  idea  about 
what  it  was. 

Mr.  Clark.  I  think  my  income  was  anywhere  from  $15,000  to 
$35,000. 


ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE  131 

The  Chairman.  That  is  from  the  office  of  sheriff,  or  is  that  all  of 
•your  income? 

Mr.  Clark.  That  is  all  of  it. 

The  Chairman.  How  about  the  office  of  sheriff?  You  get  $7,500 
salary  and  then  fees  for  different  things;  I  suppose  turnkey  fees  and 
things  of  that  sort  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  What  does  that  amount  to? 

Mr.  Clark.  It  varies.  Some  years  I  will  make  more  than  I  will  in 
others. 

The  Chairman.  Let's  say  last  year. 

Mr.  Clark.  Last  year  I  didn't  make  very  much. 

The  Chairman.  How  much  ? 

Mr.  Clark.  I  don't  know.   I  would  have  to  check  and  see. 

The  Chairman.  How  many  gambling  places  operated  in  Broward 
County  last  year  during  the  season  ? 

Mr.  Clark.  Three  or  four. 

The  Chairman.  How  about  bookmaking  operations?  Did  you  do 
anything  to  try  to  check  them  ? 

Mr.  Clark.  We  closed  them  this  winter. 

The  Chairman.  After  some  State  law  was  passed  or  after  the  Gov- 
ernor issued  an  order  about  it? 

Mr.  Clark.  The  attorney  general. 

The  Chairman.  How  many  did  you  have  operating  up  to  that 
time  ? 

Mr.  Clark.  I  don't  know. 

The  Chairman.  What  would  be  your  best  guess  ? 

Mr,  Clark.  I  guess  four  or  five  of  them  places. 

The  Chairman.  Along  on  the  main  street  where  anybody  could 
go  in  ? 

Mr.  Clark.  In  the  city  limits  I  usually  let  the  county  and  city 
police  handle  it. 

The  Chairman.  Isn't  it  your  responsibility  as  sheriff  of  the  county  ? 

Mr.  Clark.  Yes;  the  same  as  it  is  their  responsibility  in  the  city. 
However  liberal  the  commissioners  want  it,  that  is  what  we  are. 

The  Chairman.  By  "liberal,"  you  mean  how  open  they  want  it  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  That  is  what  you  let  them  go  on  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Do  you  feel  that  the  people  over  there  elected  you 
on  an  open-town  platform  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  You  have  been  doing  that  since  1933  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Suppose  one  of  these  fellows  wants  to  set  up  a 
place  like  Greenacres  or  Colonial  Inn  or  an  operation  of  that  kind,  do 
they  come  and  get  in  touch  with  you  or  some  of  your  representatives 
to  make  arrangements  about  it  ? 

Mr.  Clark.  They  usually  go  to  the  official — they  don't  make  ar- 
rangements. 

The  Chairman.  You  say  they  get  some  officials  ? 

Mr.  Clark.  I  mean,  the  city  wants  it  liberal. 

The  Chairman.  You  mean  he  gets  in  touch  with  some  of  the  city 
officials  about  opening  up? 


132  lORGANIZED    C'RIIMB   IN   mTEKSTATE    COMMERCE 

Mr.  Clark.  I  don't  know  whether  they  get  in  touch  with  the  city 
officials. 

The  Chairman.  Do  they  get  in  touch  with  you  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Did  Lansky  get  in  touch  with  you  when  he  opened 
Colonial  Inn? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Or  any  of  his  representatives  ? 

Mr.  Clark.  I  don't  know. 

The  Chairman.  Do  you  know  Mr.  Allenberg  down  here  ? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  At  the  WofFord  Hotel? 

Mr.  Clark.  Yes,  sir. 

The  Chairman.  Did  he  come  up  to  see  you  about  opening  up  any 
of  these  places  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  How  well  do  you  know  Mr.  Allenberg? 

Mr.  Clark.  I  have  known  him  occasionally — seen  him  off  and  on. 
We  had  a  convention  in  his  hotel  a  few  years  ago. 

The  Chairman.  Any  other  questions,  Mr.  Halley  ? 

Mr.  Halley.  I  want  to  know  a  little  bit  more  about  the  liberal 
ticket.  You  say  the  newspapers  accused  you  of  allowing  the  city  to 
be  run  wide  open,  or  the  county? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.  That  was  the  opposition  crowd  ? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.  Did  you  issue  a  statement  saying,  "Of  course,  I  am 
going " 

Mr.  Clark.  No. 

Mr.  Halley.  Did  you  deny  it? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  If  we  checked  the  records,  would  we  find  that  you 
made  a  speech  or  issued  a  statement  denying  charges  that  ^-ou  failed 
to  enforce  the  law  ? 

Mr.  Clark.  I  don't  think  you  would. 

Mr.  Halley.  You  never  denied  those  charges  ? 

Mr.  Clark.  Not  that  I  remember. 

Mr.  Halley.  Never  admitted  it  or  denied  it.    You  just  let  it  ride? 

Mr.  Clark.  Not  that  I  remember. 

Mr.  Halley.  What  did  you  say  in  your  campaign?  Did  you  make 
some  speeches? 

Mr.  Clark.  I  made  one  speech. 

Mr.  Halley.  Did  you  say  anything  about  gambling  in  your  speech  ? 

Mr.  Clark.  No,  sir. 

The  Chairman.  What  did  you  say,  Sheriff  ? 

Mr.  Clark.  Just  told  them  that  I  was — I  thought  I  had  done  a 
good  job  as  sheriff  of  the  county. 

The  Chairman.  Told  them  that  you  were  healthy  ? 

Mr.  Clark.  Told  them  a  few  of  the  things  I  had  done  for  them. 

The  Chairman.  But  you  didn't  say  anything  one  way  or  the  other 
about  gambling? 

Mr.  Clark.  No,  sir. 

The  Chairman.  Did  your  opponent? 

Mr.  Clark.  He  did. 


ORGANIZED    CRIME    IN    INTERSTATE   COMMERCE  133 

The  Chairman.  How  much  did  you  win  by  ? 

Mr.  Clark.  I  think  I  beat  two  men  by  somewhere  around  1,500 
votes. 

The  Chairman.  Out  of  how  many  votes? 

Mr.  Clark.  I  guess  it  was — I  can't  say  positive — maybe  18,000  or 
20,000  votes,  I  guess. 

Mr.  Halley.  Did  you  provide  deputies  to  protect  these  gambling 
houses  ? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  There  are  no  deputy  sheriffs  ? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  Are  there  any  stationed  in  any  of  the  gambling  houses  ? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  Do  they  all  contribute  to  your  campaign  ? 

Mr.  Clark.  I  don't  know. 

Mr.  Halley.  Did  the  people  who  run  Greenacres  contribute  ? 

Mr.  Clark.  I  couldn't  say.    I  didn't  go  to  them  and  ask  them  myself. 

Mr.  Halley.  What  do  you  think  ? 

Mr.  Clark.  I  couldn't  tell  you. 

Mr.  Halley.  Have  you  ever  been  to  Greenacres,  or  have  you  walked 
into  the  place  ? 

Mr.  Clark.  No. 

Mr.  Halley.  The  Boheme  Club? 

Mr.  Clark.   I  was  down  there  at  some  charity  affair  sometime. 

Mr.  Halley.  Were  you  ever  in  the  Colonial  Inn  ?  That  is,  before 
it  gave  up  its  gambling  operations  ? 

Mr.  Clark.  We  were  down  at  a  couple  of  charity  affairs  sometimes. 

Mr.  Halley.  Prior  to  the  charity  affairs,  is  it  your  testimony  that 
you  never  entered  the  premises  of  Greenacres  or  besides  those  affairs  ? 

Mr.  Clark.  I  don't  believe  I  was  ever  in  there  unless  I  went  down 
after  somebody ;  I  don't  remember. 

Mr.  Halley.  Did  you  consider  it  your  duty  as  sheriff  of  the  county 
to  at  least  find  out  what  was  going  on  in  a  place  that  was  notoriously 
engaging  in  gambling,  even  if  you  were  liberal  ? 

Mr.  Clark.  I  never  had  any  complaints  on  it. 

Mr.  Halley.  You  knew  gambling  was  going  on  ? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.   You  didn't  even  care  to  find  out  what  it  was  like  ? 

Mr.  Clark.  No. 

Mr.  Halley.  And  the  same  applies  to  Club  Boheme?  And  to  the 
Colonial  Inn? 

Mr.  Clark.  Never  went  in  them. 

Mr.  Halley.  Was  there  gambling  at  the  charity  affairs  ? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  Just  eating  and  entertainment? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.  During  those  charity  affairs,  was  gambling  going  on 
in  the  other  rooms? 

Mr.  Clark.  No,  sir. 

Mr.  Halley.  You  would  say  that  you  have  never  personally  wit- 
nessed any  gambling  in  any  of  those  places  such  as  Club  Boheme, 
Colonial  Inn,  or  Greenacres  ? 

Mr.  Clark.  Yes,  sir. 


134  ORGANIZED    ORIIME'  IN    INTERSTATE    COMMERCE 

Mr.  Halley.  That  is  your  specific  testimony  ? 

Mr.  Clark.  Yes,  sir. 

Mr.  Halley.  I  have  no  other  questions. 

The  Chairman.  Thank  you,  Sheriff.  Do  you  want  to  make  an  addi- 
tional statement? 

Mr.  Clark.  I  closed  up  Greenacres  one  time. 

The  Chairman.  When  was  that? 

Mr,  Clark.  Two  or  three  years  ago. 

The  Chairman.  What  did  you  do  that  for  ? 

Mr.  Clark.  On  some  complaints. 

The  Chairman.  They  got  a  little  rowdy,  did  they  ? 

Mr.  Clark.  I  had  some  complaints  from  somebody. 

The  Chairman.  Didn't  they  open  right  up  after  that  ? 

Mr.  Clark.  I  don't  remember. 

The  Chairman.  You  just  closed  them  up  for  a  short  time? 

Mr.  Clark.  I  don't  remember  whether  they  were  closed  for  the  rest 
of  the  season  or  not. 

The  Chairman.  All  right,  Sheriff.    Thank  you. 

Mr.  Halley.  The  stenographer  is  specifically  instructed  to  keep  the 
notes  and  any  extra  copies  of  the  testimony  in  a  secure  place  under 
lock  and  key,  and  to  advise  the  committee  of  the  total  number  of 
copies  which  are  made  and  the  location  of  any  extra  copies  and  of 
the  notes. 

The  stenographer  is  further  instructed  not  to  divulge  any  copies 
of  the  testimony  except  with  the  permission  of  the  committee  in 
writing. 

The  committee  will  require  one  copy  of  the  record,  for  which  the 
committee  is  to  be  billed  at  the  price  agreed. 

(Whereupon,  at  5 :  50  p.  m.,  the  hearing  was  adjourned  subject  to 
call  of  the  chairman.) 


INVESTIGATION  OF  OEriANIZEI)  CRIME  IN  INTERSTATE 

COMMERCE 


THURSDAY,   JULY    13,    1950 

United  States  Senate, 
Special  Committee  To  Investigate 
Organized  Crime  in  Interstate  Commerce, 

Miami^  Fla. 

The  committee  met  in  the  courtroom  of  the  United  States  district 
court,  Miami,  Fla.,  on  July  13,  1950,  Senator  Estes  Kefauver  (chair- 
man), presiding. 

Present :  Senators  Kefauver  and  Hunt. 

Also  present :  Rudolph  Halley,  chief  counsel ;  Alfred  Klein,  associ- 
ate counsel ;  Downey  Rice,  associate  counsel ;  William  Garrett,  associ- 
ate counsel ;  Harold  G.  Robinson,  chief  investigator ;  Ralph  W.  Mills, 
investigator;  Daniel  P.  Sullivan,  operating  director;  and  Col.  J.  R. 
Younger,  president  of  the  Crime  Connnission  of  Greater  Miami. 

The  Chairman.  The  committee  will  come  to  order. 

Ladies  and  gentlemen,  this  is  a  duly  constituted  hearing  of  the 
United  States  Senate  Special  Committee  To  Investigate  Organized 
Crime  in  Interstate  Commerce,  pursuant  to  Senate  Resolution  202, 
Eighty-first  Congress,  second  session,  which  vests  in  this  committee 
the  following  authority,  and  for  the  benefit  of  the  interested  people 
and  the  public  it  might  be  well  to  read  the  resolution  under  which 
this  committee  operates.    It  is  very  brief.    It  requires  the  committee — 

to  make  a  full  and  complete  study  and  investigation  of  whether  organized  crime 
utilizes  the  facilities  of  interstate  commerce  or  otherwise  operates  in  inter- 
state commerce  in  furtherance  of  any  transactions  which  are  in  violation  of  the 
law  of  the  United  States  or  of  the  State  in  which  the  transactions  occur,  and,  if 
so,  the  manner  and  extent  to  which,  and  the  identity  of  the  persons,  firms,  or 
corporations  by  which  such  utilization  is  being  made,  what  facilities  are  being 
used,  and  whether  or  not  organized  crime  utilizes  such  interstate  facilities  or 
otherwise  operates  in  interstate  comniierce  for  the  development  of  corrupting 
influences  in  violation  of  the  law  of  the  United  States  or  of  the  laws  of  any 
S'tate:  Provided,  however,  That  nothing  contained  herein  shall  (1)  authorize 
the  recommendation  of  any  change  in  the  laws  of  the  several  States  relative  to 
gambling,  (2)  effect  any  change  in  the  laws  of  any  State  relative  to  gambling, 
or  (3)  effect  any  possible  interference  with  the  rights  of  the  several  Sates  to 
prohibit,  legalize,  or  in  any  way  regulate  gambling  within  their  borders.  For 
the  purposes  of  this  resolution,  the  term  "State"  includes  the  District  of  Co- 
lumbia or  any  Territory  or  possession  of  the  United  States. 

With  reference  to  the  jurisdiction  of  the  committee,  it  will  be  seen 
that  if  there  is  any  violation  of  the  laws  of  the  United  Statas  or  of 
the  several  States  involving  interstate  commerce,  there  is  jurisdiction 
in  this  committee. 

135 
68958— 50— pt.  1 10 


136  (ORGANIZED   OROME'  IN   INTERSTATE    COlVIMERaE 

In  the  hearings  of  the  committee,  the  question  of  jurisdiction  will 
not  be  considered  from  purely  the  matter  of  the  particular  hearing 
at  the  place  wliere  it  is  being  had — that  is,  in  hearings  in  other  parts — 
in  Washington  and  elsewhere — the  committee  has  developed  and  un- 
questionably will  develop  to  a  greater  extent  matters  which  relate  to 
interstate  transactions  in  which  Florida  operations  and  people  are 
involved. 

So,  in  case  the  matter  should  come  up  as  to  the  question  of  contempt 
proceedings  or  anything  of  that  sort,  the  over-all  picture  developed  by 
the  committee  will  be  considered  relative  to  its  jurisdiction. 

It  must  be  apparent,  however,  that  while  the  committee  has  very 
wide  jurisdiction  to  make  its  investigation,  this  is  not  a  prosecuting 
committee.  We  are  not  a  court  for  the  purpose  of  inflicting  penal 
punishment  upon  anyone. 

The  purpose  of  the  committee  is,  of  course,  as  with  any  legislative 
committee,  to  find  out  what  the  facts  are  with  reference  to  whether  the 
laws  of  the  Federal  Government  are  adequate,  whether  they  need 
changing,  or  whether  any  amendments  or  additional  laws  should  be 
passed. 

Of  course,  it  is  the  hope  of  this  committee  also  to  make  it  clear  that 
we  cannot  possibly  investigate  every  criminal  in  the  United  States  or 
every  criminal  transaction.  If  we  did  so,  we  could,  of  course,  spend 
a  great  deal  of  time  and  go  to  many  places  in  the  country. 

We  wish  to  call  your  attention  to  the  fact  that  this  committee  is 
composed  of  five  very  busy  Membei^  of  the  United  States  Senate,  and 
the  staff  of  the  committee,  or  most  of  them,  are  doing  what  they  are 
as  a  matter  of  public  service  rather  than  for  compensation. 

So  we  are  anxious  to  do  our  job  as  thoroughly  as  we  can  and  make 
our  report  to  the  Senate.  We  will  try  to  get  a  thorough,  accurate,  and 
over-all  picture  of  the  big  aspects  of  the  problem  that  we  are  investi- 
gating, and  the  rest  is  the  responsibility  and  job  of  the  local  people, 
the  local  law-enforcement  people  and  officers,  and  people  who  want 
and  are  interested  in  good  government. 

As  to  the  work  of  this  committee,  any  laws  that  the  Federal  Govern- 
ment may  pass  cannot,  of  course,  give  you  law  enforcement  or  elimi- 
nate criminal  activities  unless  the  local  people  want  to  have  it  done 
and  are  willing  to  see  that  they  have  law-enforcement  officers  and 
governmental  officials  w^ho  will  insist  that  it  be  done. 

We  are  not  setting  ourselves  up  in  competition  with  any  law-enforce- 
ment officers,  the  Department  of  Justice,  the  local-enforcement  officers, 
or  the  State  of  Florida. 

Our  hope  is  that  we  can  work  in  cooperation  with  and  be  of  assistance 
to  these  enforcement  agencies,  and  that  we  may  be  able  to  present  to 
the  public  the  tremendous  importance  of  the  over-all  crime  picture 
as  it  affects  the  daily  lives  of  the  people  of  our  country. 

In  that  connection  it  may  be  appropriate  to  state  that  the  best  evi- 
dence we  have  is  that  the  take  from  crime,  gambling,  and  other  cor- 
rupting influences  from  the  American  people  per  year — and  it  has 
to  be  a  rather  wild  guess — is  somewhere  between  15  and  22  billion 
dollars. 

That  is,  of  course,  a  great  deal  more  than  we  are  spending  on  our 
armed  services  and  our  Armed  Forces  today. 


ORGANIZED   CRIME   IN    INTERSTATE    COMMERCE  137 

The  second  part  of  the  jurisdiction  of  this  committee  is  to  see  what, 
if  any,  corrupting  influences,  are  at  work  upon  law-enforcement  officers 
and  people  in  government  generally. 

In  the  long  run,  it  is,  of  course,  necessary  to  first  establish — and 
that  will  be  done  either  here  or  in  hearings  in  other  parts  of  the 
country — that  there  have  been  violations;  that  there  is  a  stream  of 
crime  in  interstate  commerce,  and  then  from  that  point  the  committee 
has  jurisdiction  to  see  what,  if  any,  corrupting  influences  may  have 
resulted  or  may  have  come  along  as  protection  in  order  that  such 
crime  might  take  place. 

It  is  not,  however,  our  prerogative,  unless  that  is  established  or 
unless  we  know  that  it  is  going  to  be  established,  to  get  into  the  matter 
of  local  politics.  State,  county,  or  city. 

We  are  not  charged  with  the  job  of  investigating  the  purity  or  lack 
of  purity  in  local  political  matters  unless  it  comes  within  the  first 
major  premise. 

The  present  hearing  is  that  of  a  subcommittee  which  is  duly  con- 
stituted as  consisting  of  the  chairman  of  the  committee  and  Senator 
Lester  C.  Hunt,  of  Wyoming.  Such  subcommittee  is  designated  pur- 
suant to  a  resolution  duly  adopted  by  a  quorum  of  the  full  committee 
at  a  committee  meeting  held  in  Washington,  D.  C,  on  July  11,  1950. 
Said  resolution,  which  is  hereby  made  a  part  of  the  minutes  of  this 
meeting,  reads  as  follows: 

Be  it  and  it  is  hereby  resolved,  That  the  chairman  be  and  he  hereby  is  authorized 
to  designate  subcommittees  for  the  purpose  of  holding  hearings  at  Miami,  Fla., 
on  July  13  and  14,  1950 ;  at  St.  Louis,  Mo.,  on  July  18,  1950 ;  and  at  Kansas  City, 
Mo.,  on  July  19  and  20,  1950,  or  at  such  other  time  as  the  chairman  may  specify ; 
and,  that,  one  member  of  the  subcommittee  so  designated  shall  constitute  a 
quorum  for  the  purpose  of  conducting  such  hearings,  administering  the  oath, 
and  taking  testimony  of  witnesses  appearing  before  it,  and  taking  such  other 
action  as  may  be  appropriate. 

At  the  outset  I  desire  to  state  that  this  committee,  through  a  duly 
constituted  subcommittee,  held  executive  hearings  in  Miami,  Fla.,  on 
May  26  and  May  27,  1950,  at  which  13  witnesses  were  heard  and  cer- 
tain documents  were  subpenaed. 

Thereafter,  through  its  investigative  staff,  the  committee  continued 
to  make  investigation  in  Miami,  Fla.,  and  in  Dade  County  and  Bro- 
ward County,  Fla.  The  committee  is  now  ready  to  hear  certain  wit- 
nesses with  reference  to  certain  of  the  facts  developed  in  this  in- 
vestigation. 

However,  it  is  important  that  it  be  made  clear  at  this  point  that 
these  hearings  are  a  portion  of  a  continuing  investigation  of  organized 
crime  in  Dade  and  Broward  Counties  and  elsewhere.  Certain  wit- 
nesses upon  whom  the  committee  has  attempted  to  serve  subpenas 
cannot  be  found  at  their  usual  residences  and  places  of  business. 
These  include : 

Sam  Cohen,  Harold  Salvey,  Charles  Friedman,  Edward  Rosen- 
baum,  Jules  Levitt,  Harry  Russell,  George  L.  Bowers,  William  H. 
Johnston,  John  Patton,  Sr.,  and  Jack  Friedlander. 

These  witnesses  may  be  under  the  mistaken  impression  that  by  re- 
maining away  from  their  usual  places  of  abode  they  can  impede  or 
avoid  the  investigation  of  this  committee.  The  committee  hereby 
serves  notice  upon  them  that  any  such  impression  is  entirely  erroneous. 
The  committee  hearings  will  continue  here  at  this  time  and  in  Wash- 


138  ORGANIZED   OROME'  IN   INTERSTATE    COMMERCE 

ington  and  in  other  places  hereafter.  The  committee  will  hear  at 
this  time  as  many  as  possible  of  the  considerable  number  of  witnesses 
who  will  appear  before  it.  The  committee  will  seek  out  any  witnesses 
upon  whom  it  has  not  been  able  to  effect  service  of  this  lawful  process 
and  these  witnesses  will  be  found  and  brought  before  this  committee 
to  testify. 

Let  me  say  by  way  of  explanation  that  Mr.  Sam  Cohen  had  an 
operation  and  is  in  the  hospital  and  he  has  expressed  a  willingness  to 
testify  when  he  is  able  to  do  so. 

The  chairman  and  the  committee  liave  checked  with  the  people 
who  have  undertaken  to  serve  subpenas  upon  the  other  witnesses.  A 
diligent  effort  has  been  made  to  locate  them.  It  is  inconceivable  that 
they  do  not  know  they  are  desired  for  appearance  before  this  com- 
mittee. The  only  impression  or  conclusion  that  must  be  drawn  from 
their  refusal  to  appear  or  to  get  in  touch  with  the  committee  or  with 
our  staff  is  that  they  feel  that  they,  by  their  absence,  might  be  able  to 
impede  the  investigation  of  this  committee,  or  that  they  feel  that  it 
would  be  very  bad  for  them  for  what  they  have  done  or  the  business 
they  are  engaged  in  for  them  to  appear. 

But  in  any  event  the  subpenas  will  remain  outstanding  for  them, 
and  if  by  any  chance  any  of  them  have  not  heard  they  are  wanted 
here,  we  hope  that  they  will  get  in  touch  with  us. 

The  press  and  radio  have  been  very  cooperative  in  carrying  the 
message  all  over  the  Nation  that  these  men  are  wanted. 

They  will  not  be  able  to  permanently  embarrass  the  committee  and 
they  are  doing  themselves  no  good  by  failing  to  cooperate.  This,  of 
course,  makes  it  more  difficult  for  the  committee  because  these  are 
important  witnesses  and  in  certain  phases  of  our  investigation  we 
will  necessarily,  for  the  time  being,  have  to  resort  to  secondary  evi- 
dence, whereas  we  would,  of  course,  like  to  present  more  direct  evi- 
dence. 

Tlie  committee  wishes  at  the  outset  to  thank  Judge  Holland,  the  dis- 
trict judge,  and  Judge  Whitehurst  for  their  cooperation  in  making 
this  courtroom  available.  They  have  arranged  to  hold  trials  and 
hearings  at  great  inconvenience  in  other  quarters  in  order  to  cooperate 
with  the  committee.    We  are  very,  very  grateful  to  them. 

We  are  grateful  to  Deputy  Marshal  Gates  and  his  assistants  for 
their  cooperation  and  their  help  both  at  the  executive  hearings  and  at 
this  hearing. 

Many  of  the  officials  of  the  Government  of  Florida,  Dade  County, 
Miami,  in  this  section,  have  been  of  tremendous  assistance  and  have 
tendered  their  cooperation  and  we  want  to  express  our  thanks  to 
them;  also  to  Col.  Jack  Younger,  president  of  the  Greater  Miami 
Crime  Commission,  and  to  Dan  Sullivan,  and  to  the  valiant  citizens 
who  have  worked  with  that  commission  and  backed  it  up.  We  want 
to  thank  them  and  pay  a  very  high  compliment  to  them  for  the  work 
they  have  done.    It  has  been  invaluable  to  us. 

Now,  the  rules  of  the  game  in  this  hearing  will  be  that  if  any  wit- 
ness is  called,  necessarily  some  names  will  be  used.  Some  people  will 
be  talked  about  aud  some  charges  will  be  made  against  people  who  are 
not  present. 

By  screening  the  testimony  at  private  hearings,  we  have  tried  to 
eliminate  as  mucli  of  that  as  possible.  The  committee  does  not  wish 
to  do  any  innocent  citizens  any  harm.    If  inadvertently  any  harm  is 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  139 

done,  we  want  to  rectify  it  as  quickly  as  possible.  So  that  while  we 
have  a  very  full  schedule,  if  any  person  whose  name  is  used  here  or 
anywliere  else  in  the  country  feels  that  he  has  been  maligned  or  un- 
justly accused  or  represented,  or  if  they  want  to  make  any  explana- 
tion, or  if  they  want  to  charge  that  any  statement  that  has  been  made 
is  untrue,  the  committee  will  hear  them  on  the  same  clay  the  statement 
is  made,  if  they  make  application  to  the  committee  or  to  our  staff,  and 
give  them  an  opportunity  to  make  any  explanation  or  to  refute  any 
charges  that  have  been  made.  They  can  feel  at  perfect  liberty  to  get 
in  touch  with  any  of  us  about  it. 

If  any  one  of  the  witnesses  wishes  to  have  counsel  present,  counsel 
will  be  welcomed. 

Ordinarily  the  rules  of  the  committee  provide  that  questions  that 
counsel  wish  to  ask  shall  be  given  to  the  committee.  We  will  permit, 
within  reasonable  limitations,  one's  own  counsel  to  ask  questions, 
but  of  course  we  will  have  to  limit  the  extent  if  it  goes  on  too  long. 

I  don't  know  whether  we  are  going  to  be  able  to  permit  smoking  over 
a  long  period  of  time  or  not.  We  will  start  off  with  permission  to 
smoke.    We  may  have  to  discontinue  it. 

The  committee  also  wishes  to  thank  the  press  for  its  cooperation 
and  the  press  photographers.  We  want  to  have  order  and  decorum 
in  the  committee  and  we  don't  want  to  have  anyone  embarrassed.  We 
want  to  get  the  facts  from  the  witnesses,  so  when  a  witness  first  ap- 
pears on  the  witness  stand,  the  ]5hotographers  with  their  flashlight 
bulbs  can  take  his  picture,  or  during  the  time  he  is  sworn,  or  just  be- 
fore he  testifies  or  after  he  testifies.  During  the  testimony  I  will 
have  to  ask  that  flashlight  bulbs  not  be  used.  I  am  sorry  if  this  in- 
conveniences anyone,  but  some  people  find  it  very  difficult  to  think  and 
testify  with  bulbs  flashing  about. 

Senator  Hunt? 

Senator  Hunt.  Mr.  Chairman,  I  believe  I  have  nothing  in  addi- 
tion to  what  you  liave  said.  I  think  you  have  touched  on  all  matters 
that  need  to  be  touched  on  before  the  opening  of  the  hearing  and  I 
have  nothing  further  to  add. 

The  Chairman.  Thank  you,  Senator  Hunt.  Does  anyone  have  any 
brief  questions  he  wants  to  ask  about  procedure  ? 

(No  response.) 

The  Chairman.  If  not,  the  resolution  appointing  this  committee 
as  a  subcommittee  to  receive  testimony  will  be  made  a  part  of  the 
record. 

(The  resolution  is  as  follows  :) 

Resolution 

Be  it  and  it  is  hereliy  resolved,  That  the  chairman  be  and  he  hereby  is  author- 
ized to  designate  subcommittees  for  the  purpose  of  holding  hearings  at  Miami, 
Fla.,  on  July  13  and  14,  1950,  at  St.  Louis,  Mo.,  on  July  18,  1950,  and  at  Kansas 
City,  Mo.,  on  July  19  and  20,  1950,  or  at  such  other  time  as  the  chairman  may 
specify ;  and,  that  one  member  of  the  subcommittee  so  designated  shall  con- 
stitute a  quorum  for  the  purpose  of  conducting  such  hearings,  administering 
the  oath,  and  taking  testimony  of  witnesses  appearing  before  it,  and  taking  such 
other  action  as  may  be  appropriate. 

The  Chairman.  Mr.  Colman  and  Mr.  Laiken  and  the  others,  will 
you  please  be  sworn  ? 

(Messrs.  Henry  E.  Colman,  Leonard  Laiken,  Irving  Bakst,  Gordon 
B.  Girling,  and  Billy  L.  Pickett  were  sworn  as  official  reporters  for 
the  subcommittee.) 


140  ORGANIZED   CRIME'  IN"   INTEESTATE    COMMERCE 

The  Chairman.  Wlio  is  our  first  witness  ? 
Mr.  Hallet.  Mr.  Walter  Morris. 

The  Chairman.  Our  first  witness  is  Mr.  Walter  Morris.  Mr.  Mor- 
ris, will  you  come  forward,  please  ? 

TESTIMONY  OF  WALTER  MORRIS,  ASSISTANT  DIRECTOR  OF 
COMMUNICATIONS,  NATIONAL  AIRLINES 

The  Chairman.  Mr.  Morris,  do  you  solemnly  swear  that  the  testi- 
mony you  will  give  this  committee  will  be  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God  ? 

Mr.  Morris.  I  do. 

Mr,  Halley.  Mr.  Morris,  will  you  state  your  address  and  your 
occupation  ? 

Mr.  Morris.  My  address  is  1947  Northwest  Forty-eighth  Street,  Mi- 
ami, Fla.  I  am  employed  by  National  Airlines  as  assistant  director  of 
communications. 

Mr.  Halley.  Mr.  Morris,  did  you  serve  on  the  grand  jury  for  Dade 
County,  Fla.  ? 

Mr.  Morris.  Yes,  sir ;  I  served  as  foreman  of  the  spring  term  grand 
jury  for  the  period  May  10, 1949,  to  November  7, 1949. 

Mr.  Halley.  And  did  that  grand  jury  issue  a  presentment  ? 

Mr.  Morris.  It  issued  a  final  report  to  the  court. 

Mr.  Halley.  A  report  was  presented  to  the  court  ? 

Mr.  Morris.  Yes. 

Mr.  Halley.  And  can  you,  as  foreman  of  that  grand  jury,  identify 
that  report? 

Mr.  Morris.  Yes. 

Mr.  Halley.  Do  you  have  a  copy  with  you  ? 

Mr.  Morris.  I  have. 

Mr.  Halley.  Mr.  Chairman,  I  offer  in  evidence  as  exhibit  No.  106  the 
grand  jury  report. 

The  Chairman.  The  grand  jury  report  will  be  received  and  made 
a  part  of  the  record  as  exhibit  No.  106  to  the  testimony  of  Mr.  Morris. 
(See  appendix,  pp.  735-740.) 

Mr.  Halley.  Will  you  summarize  the  findings  of  the  grand  jury 
of  which  you  were  foreman  ? 

Mr.  Morris.  Well,  we  found  in  the  testimony  of  witnesses  whom  we 
considered  to  be  reliable  that  there  appears  to  be  quite  a  congregation 
of  criminal  elements  in  the  Miami  area,  or  in  the  south  Florida  area. 

Mr.  Halley.  Did  you  find  any  crime  condoned  by  local  law-enforce- 
ment agencies  ? 

Mr.  Morris.  Well,  we  found  that  crime  existed,  and  that  it  would 
be  difficult  to  believe  that  it  could  exist  without  the  condonation  of 
local  law-enforcement  agencies. 

Mr.  Halley.  Did  you  have  occasion  to  censure  any  law  enforcement 
agency  in  Dade  County  ? 

Mr.  Morris.  I  believe  that  we  made  some  mention  of  the  sheriff's 
office  and  their  efforts  to  locate  members  of  the  jury,  or  rather  to  serve 
subpenas  for  jury  service,  and  we  also  had  something  to  say  about  the 
city  police  department. 

Mr.  Halley.  What  did  you  have  to  say  about  the  city  police  depart- 
ment? 


ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE  141 

Mr.  Morris.  It  seemed  that  quite  a  bit  of  bickering  and  feuds  existed 
in  tlie  police  department. 

Mr.  Hallet.  Reading  from  page  7  of  your  report,  did  the  grand 

jury  conclude  as  follows : 

If  the  people  of  Dade  C5ounty  desire  that  organized  crime  be  destroyed,  it  can 
be  destroyed.  The  facilities  required  are  available  in  the  choice  of  men  they 
elect  as  sheriff  and  city  commissioners. 

Mr.  Morris.  Yes ;  we  made  such  a  statement. 

Mr.  Halley.  Did  you  hear  evidence  to  justify  such  a  statement? 

Mr.  Morris.  Yes. 

Mr.  Halley.  Did  you  hear  witnesses? 

Mr.  Morris.  Yes. 

Mr.  Halley.  Did  you  conclude  that  bookie  operations  were  operat- 
ing in  the  city  of  Miami  and  in  the  city  of  Miami  Beach  ? 

Mr.  Morris.  Yes. 

Mr.  Halley.  And  you  heard  witnesses  who  testified  to  this  effect? 

Mr.  Morris.  We  did. 

Mr.  Halley.  Did  you  hear  testimony  to  the  effect  that  Dade  County 
was  wide  open  to  anybody  desiring  to  visit  well-appointed  air-con- 
ditioned places  set  up  for  card  games,  dice  games,  roulette,  and  book- 
making? 

Mr.  Morris.  We  did. 

Mr.  Halley.  Did  you  find  that  in  Miami,  Bolita  and  the  numbers 
racket  were  flourishing  ? 

Mr.  Morris.  Yes ;  they  were. 

Mr.  Halley.  Did  you  conclude  that  there  appeared  to  be  little 
effort  made  to  curb  these  gambling  operations,  although  they  were 
being  carried  on  under  the  eyes  of  the  police  ? 

Mr.  Morris.  Yes. 

Mr.  Halley.  Now,  Mr.  Morris,  did  you  find  any  evidence  that 
this  crime  was  on  an  organized  basis  by  groups  of  organized  criminals 
operating  on  a  widespread  basis  ? 

Mr.  Morris.  Well,  particularly  in  bookmaking,  it  would  be  very 
difficult  to  believe  that  the  organization  or  the  set-up  that  they  had 
could  exist  unless  it  was  conducted  on  an  organized  basis. 

Mr.  Halley.  And  did  you  have  testimony  to  that  effect  ? 

Mr.  Morris.  Yes. 

Mr.  Halley.  Did  you  have  testimony  to  the  effect  that  nationally 
known  criminals  and  racketeers  were  finding  a  haven  in  Dade  County  ? 

Mr.  Morris.  We  did. 

Mr.  Halley.  And  that  these  same  criminals  and  racketeers  were 
in  charge  of  the  crimes  as  to  which  you  had  testimony  ? 

Mr.  Morris.  Yes. 

Mr.  Halley.  Mr.  Morris,  is  there  anything  further  you  would  like 
to  say  about  your  findings  and  about  the  evidence  before  you  to  this 
committee  ? 

Mr.  Morris.  Well,  it  would  appear  to  us  that  it  would  be  very  diffi- 
cult for  local  law  enforcement  agencies  to  cope  with  some  of  these 
things  when  they  cross  State  lines,  and  there  was  evidence  presented 
to  us  which  indicated  that  in  many  cases  the  criminal  activity  in  one 
location  is  being  conducted  more  or  less  from  a  remote  point,  at  a 
headquarters,  so  to  speak,  which  in  many  cases  exist  outside  the  com- 
munity, outside  the  county,  and  even  in  a  different  State. 


142  ORGANIZED   ORlIME:  IN   INTE'R'STATE    eiOMMERCE 

Mr.  Halley.  Do  you  have  any  recommendations  you  would  want 
to  make  to  this  committee  ? 

Mr.  Morris.  Being  a  layman  I  wouldn't  feel  that  I  was  competent 
to  make  recommendations  for  the  enactment  of  legislation  necessary 
to  control  this,  but  I  do  feel  that  there  is  a  definite  need  for  it. 

Mr.  Halley.  As  a  grand  jury,  your  function  was  to  find  facts? 

Mr.  Morris.  Yes. 

Mr.  Halley.  And  you  heard  evidence  and  on  this  evidence  you  did 
find  facts  ? 

Mr.  Morris.  Yes. 

Mr.  Halley.  I  have  no  further  questions,  Mr.  Chairman. 

The  Chairman.  Mr.  Morris,  what  is  your  occupation?  What  do 
you  do  ? 

Mr.  Morris.  I  am  an  airlines  communications  man. 

The  Chairman.  This  report  was  made  in  the  spring  of  1949  or  in 
the  summer  of  1949  ? 

Mr.  Morris.  The  jury  was  impaneled  in  the  spring  of  1949  and  the 
report  was  submitted  on  November  7,  1949. 

The  Chairman.  And  there  had  been  a  previous  grand  jui-y  which 
made  a  report  in  1947  or  1948? 

Mr.  Morris.  Yes. 

The  Chairman.  It  is  stated  here  that  your  report  is  a  repetition  of 
what  is  contained  on  the  subject  in  the  admirable  report  of  the  grand 
jury  for  the  winter  term  of  1947. 

Mr.  Morris.  Yes. 

The  Chairman.  So  the  conditions  that  you  found  have  apparently 
been  going  on  for  some  time  ? 

Mr.  Morris.  Apparently  so. 

The  Chairman.  Mr.  Morris,  what  indictments,  did  you  return 
against  any  of  these  gamblers  ? 

Mr.  Morris.  We  returned  no  indictments  against  them. 

The  Chairman.  Isn't  the  province  of  a  grand  jury  to  ferret  out  vio- 
lators of  the  law  and  return  indictments  against  them  ? 

Mr.  Morris.  It  is. 

The  Chairman.  Why  couldn't  you  do  that? 

Mr.  Morris.  Well,  the  grand  jury  was  handicapped  by  many  things. 
Our  grand  jury  was  somewhat  confused  by  the  enactment  of  certain 
State  legislation  intended  to  strengthen  the  system  which  actually 
placed  some  doubt  as  to  our  legal  status. 

The  Chairman.  Do  you  mean  by  "State  legislation"  whether  you 
had  jurisdiction  in  the  county  or  whether  the  State  had  jurisdiction? 

Mr.  Morris.  No.  The  legality  of  the  jury  itself  was  in  question 
for  a  while.  It  is  very  difficult  for  a  local  grand  jury  to  get  evidence 
against  people  who  are  operating  through  several  States.  After  all, 
we  are  liere  in  one  place,  and  it  is  very  difficult  to  follow  leads  which 
disappear  across  State  boundaries. 

The  Chairman.  How  about  bookmaking  and  gambling  places  and 
places  of  that  sort  ?     Are  they  so  difficult  to  find  ? 

Mr.  Morris.  No  ;  they  are  not  difficult  to  find  at  all. 

The  Chairman.  Why  couldn't  you  bring  them  in  and  get  indict- 
anents  against  them? 

Mr.  Morris.  Frankly,  we  could  see  little  point  in  indicting  a  local 
small-time  bookmaker  who  is  merely  one  small  part  of  a  large  organi- 
zation. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  143 

The  Chairman.  And  you  couldn't  reach  the  bigger  fellow? 

Mr.  Morris.  We  couldn't  reach  the  bigger  fellows  at  all.  We  tried. 
Six  months  we  tried. 

The  Chairman.  What  efforts  did  you  make? 

Mr.  Morris.  We  used  every  tool  at  our  command.  Our  final  deci- 
sion was  that  the  grand  jury  was  probably  incapable  or  incompetent 
to  deal  with  crime  on  such  a  widespread  basis,  such  a  widespread  or- 
ganization. Our  final  recommendation  was  that  perhaps  the  P^ederal 
Government  might  look  into  it. 

The  Chairman.  Well,  sir,  as  you  very  well  know,  this  business  of 
passing  on  the  responsibility  to  the  Federal  Government  is  not  a  very 
healthy  picture.  We  want  to  assume  the  responsibility  where  it  is 
necessary  that  we  do  it,  but  getting  the  Federal  Government  into  the 
local  law  enforcement  is  not  a  healthy  thing,  in  the  opinion  of  the  com- 
mittee, if  it  can  be  handled  by  the  local  people. 

After  all,  unless  it  has  the  backing  of  and  support  of  the  local  agen- 
cies, nobody  can  get  very  far. 

Take  Frank  Costello  and  Frank  Erickson  and  many  of  thosepeople 
who  have  been  over  here  and  who  operate  in  this  section,  don't  they 
come  here  where  they  can  be  reached  by  subpena  of  the  grand  jury? 

Mr.  Morris.  They  appear  to  be  here  from  time  to  time;  yes. 

The  Chairman.  Where  they  would  be  subject  to  arrest  in  this  juris- 
diction ? 

Mr.  Morris.  Yes. 

The  Chairman.  How  about  the  cooperation  of  the  law-enforcement 
officers  with  the  grand  jury?  Did  they  bring  information  to  the 
grand  jury  about  the  so-called  big  operators  that  you  have  talked 
about  ? 

Mr.  Morris.  I  can't  say  that  we  received  information  from  them  as 
to  the  big-time  operators ;  no. 

The  Chairman.  Senator  Hunt,  do  you  have  any  questions  ? 

Senator  Hunt.  I  might  ask:  What  particular  office  or  what  par- 
ticular local  official  has  the  greatest  responsibility  in  enforcing  the 
gambling  and  the  vice  laws  ? 

Mr.  Morris.  I  M-ould  say  the  sheriff  does. 

Senator  Hunt.  The  sheriff's  office? 

Mr.  Morris,  That  is  my  personal  opinion. 

Senator  Hunt.  Did  the  sheriff  appear  before  your  grand  jury? 

Mr.  Morris.  No ;  he  did  not. 

Senator  Hunt.  How  come  he  didn't  testify  ? 
■     Mr.  Morris.  During  a  great  portion  of  our  time,  I  believe  he  was 
out  of  the  State  fishing. 

Senator  Hunt.  Out  of  this  State  fishing? 

Mr.  Morris.  I  think  he  was;  yes. 

Senator  Hunt.  The  State  is  rather  noted  for  fishing  itself;  isn't  it? 

Mr.  Morris.  As  I  remember,  it  was  North  Carolina  or  some  such 
place.     They  also  have  fish  there. 

Senator  Hunt.  How  long  were  you  in  session  ? 

Mr,  Morris.  For  6  months. 

Senator  Hunt.  And  he  was  fishing  for  the  full  6  months  ? 

Mr.  Morris.  I  don't  believe  that  he  was  during  that  last  portion. 
Some  other  things  came  up  which  made  it  inad\asable  for  us  to  call 
him  at  that  time. 


144  ORGANIZED    C'RIIME    IN    INTERSTATE    COMMERCE 

Senator  Hunt.  I  take  it  from  your  answer  to  my  question  that 
the  grand  jury  would  primarily  hold  the  sheriff  accountable  for  the 
lack  of  enforcing  the  law  ? 

Mr.  Morris.  I  think  he  is  the  supreme  authority  in  the  county; 
yes. 

Senator  Hunt.  Is  that  the  sheriff  that  was  removed  by  the  former 
Governor,  or  was  that  in  another  county  ? 

Mr.  Morris.  I  think  that  is  another  county,  sir. 

Senator  Hunt.  It  is  a  little  difficult  to  understand,  Mr.  Morris, 
after  your  investigation  and  what  you  have  put  in  your  report,  that 
you  were  unable  to  bring  any  indictments  of  any  kind.  What  par- 
ticularly intimidated  your  grand  jury? 

Mr.  Morris.  Well,  I  think  that  some  of  the  things  which  actuallj' 
stopped  us  from  doing  more  were  things  beyond  our  control  and 
which  actually  have  no  bearing ;  certain  State  legislation  which  unfor- 
tunately was  enacted  at  the  time  our  jury  was  in  session. 

Senator  Hunt.  I  know  you  are  not  an  attorney,  but  do  you  happen 
to  know  what  that  legislation  was,  or  what  the  purport  of  it  was  ? 

Mr.  Morris.  Yes.  It  was  intended  to  strengthen  our  jury  system 
by  increasing  the  number  of  members  on  each  jury  in  order  that  it 
would  be  easier  to  maintain  a  quorum,  and  the  law  was  enacted  in- 
creasing the  number  of  jurors  without  the  saving  clause  to  the  jury 
which  was  in  existence  at  the  time  of  the  enactment,  and  it  was  taken 
then  to  the  circuit  court. 

The  first  indictment  we  returned  was  appealed  to  the  circuit  court 
and  then  to  the  supreme  court  as  to  whether  or  not  we  were  a  legally 
constituted  body,  and  there  was  considerable  confusion  for  some  time 
and  we  didn't  know  what  to  do. 

Senator  Hunt.  I  have  no  other  questions. 

The  Chairman.  The  sheriff  you  referred  to  was  Sheriff  Jimmy 
Sullivan  of  Dade  County  ? 

Mr.  Morris.  That  is  true ;  yes. 

The  Chairman.  Thank  you,  Mr.  Morris. 

TESTIMONY  OF  HON.  STANLEY  MILLEDGE,  JUDGE  OF  THE 
CIRCUIT  COURT  OF  DADEn[!OUNTY,  FLA. 

The  Chairman.  Judge  Stanley  Milledge,  please. 

Judge  Milledge,  do  you  solemnly  swear  that  the  testimony  you  will 
give  the  committee  will  be  the  truth,  the  whole  truth,  and  nothing  but 
the  truth,  so  help  you  God  ? 

Judge  Milledge.  I  do. 

The  Chairman.  The  committee  appreciates  your  appearance  here, 
and  we  hope  you  will  feel  free  to  give  us  any  information  you  think 
will  be  of  help  to  us. 

Mr.  Halley.  Judge  Milledge,  are  you  a  judge  of  the  Circuit  Court 
of  Dade  County  ? 

Judge  MiiXEDGE.  Yes. 

Mr.  Halley.  How  long  have  you  been  a  member  of  that  bench  ? 

Judge  Milledge.  About  5i/^  years. 

Mr.  Halley.  Did  you,  in  connection  with  your  official  duties,  become 
acquainted  with  any  matters  of  law  enforcement  in  Dade  County? 

Judge  Milledge.  Well,  my  principal  source  of  knowledge  was  prior 
to  my  being  on  the  bench,  or,  rather  after  I  had  served  an  interim  term 


ORGANIZED    CRIME,   IN    INTERSTATE    COMMERCE  145 

of  C  months.    Then  I  was  State  attorney  for  2  years  from  August  1 
1943,  until  I  went  on  the  bench  2  years  hiter. 

Mr.  Halley.  In  w^hat  year  did  you  ^o  back  on  the  bench  ? 

Judge  MiLLEDGE.  I  went  back  on  July  1, 1945. 

Mr.  Halley.  Now,  did  you  have  occasion  at  some  time  to  appoint  a 
number  of  private  citizens  as  agents  of  the  court  and  furnish  them 
with  warrants  to  obtain  evidence  ? 

Judge  MiLLEDGE.  On  one  occasion.  I  don't  recall  just  when  it  was. 
I  believe  it  was  a  year  ago  last  March  or  April. 

Mr.  Halley.  Would  you  state  exactly  what  you  did  on  that  occasion, 
Judge  ? 

Judge  MiLLEDGE.  Some  people  came  to  me  with  their  affidavit  just  as 
a  law-enforcement  officer,  fortified  by  photographs  of  some  place  over 
at  Miami  Beach  showing  headphones  and  all  the  usual  paraphernalia 
not  merely  of  a  gambling  establishment  but  a  relay  station  at  least  for 
disseminating  gambling  to  bookies.  On  the  basis  of  the  affidavit, 
which  was  in  the  usual  form  of  affidavit  upon  which  a  warrant  of 
arrest  and  search  is  sought,  fortified  by  other  testimony,  considerable 
doubt  was  expressed  as  to  whether  if  that  warrant  were  given  to  the 
law-enforcement  officers  designated  by  law  to  serve  warrants  it  would 
be  effectively  served,  and  I  appointed  an  elisor  under  the  statutory 
provision  which  permits  the  court  to  do  that  in  case  of  necessity. 

Mr.  Halley.  Did  you  furnish  your  elisor  with  warrants? 

Judge  MiLLEDGE.  Yes. 

Mr.  Halley.  And  was  the  warrant  served  on  the  premises  at  which 
there  was  alleged  to  be  this  gambling  and  bookmaking  equipment  ? 

Judge  MiLLEDGE.  It  was. 

Mr.  Halley.  Would  you  state  the  name  of  the  premises  at  which 
the  establishment  was  located  ? 

Judge  MiLLEDGE.  I  am  sorry,  I  don't  recall.    I  could 

Mr.  Halley.  Was  it  the  Surf  side  Hotel  at  Miami  Beach  ? 

Judge  MiLLEDGE.  I  believe  so. 

Mr.  Halley.  And  what  was  the  result  of  the  serving  of  the  warrant  ? 
Was  an  indictment  found  on  the  premises  ? 

Judge  MiLLEDGE.  Yes.  The  warrant  was  returned  to  me.  Of  course, 
any  prosecution  upon  that  warrant  would  not  be  in  the  circuit  court ; 
so,  I  had  nothing  further  to  do  with  any  prosecutions  that  might  have 
resulted  from  that  action. 

The  warrant,  of  course,  having  issued  from  the  circuit  court,  was 
returnable  to  the  circuit  court;  and  the  warrant,  affidavit,  and  the 
objects  seized  as  a  result  of  the  warrant  were  then  turned  over  to  the 
clerk  of  the  Criminal  Court  of  Record  of  Dade  County. 

Mr.  Halley.  Did  your  elisors  find  a  short-wave  radio  in  operation 
on  those  premises  ? 

Judge  MiLLEDGE.  I  am  sorry,  I  don't  recall. 

Mr.  Halley.  Do  you  know  whether  they  found  a  large  number  of 
telephones  present? 

Judge  MiLLEDGE.  Yes;  I  remember  that.  I  haven't  had  any  oc- 
casion to  check  back  on  any  of  this  since  the  return  of  the  warrant. 
I  am  speaking  from  memory,  but  I  do  recall  that  there  was  a  consid- 
erable number — I  don't  recall  how  much — of  telephone  equipment. 

Mr.  Halley.  Did  they  find  a  bookmaking  establishment  operating 
as  well  ? 

Judge  MiLLEDGE.  I  believe  so. 


146  ORGANIZED    GRIME'  IX    INTERSTATE    COMMERCE 

Mr.  Hali^ey.  Do  you  know  whether  the  case  after  it  left  your  hands 
was  prosecuted  to  a  conchision  ? 

Judge  MiLLEDGE.  No.  An  information  was  filed  by  the  solicitor  of 
Dade  County,  and  there  have  been  some  hearings  on  it  recently.  In 
addition  to  knowing  about  it  from  reading  the  newspapers,  I  am 
aware  of  it  because  one  of  the  assistant  county  solicitors  telephoned 
me  and  asked  me  if  I  would  testify  in  the  criminal  court  of  record 
as  to  what  evidence  I  had  upon  which  I  issued  the  warrant  to  an 
elisor  rather  than  one  of  the  regular  constituted  law-enforcement  of- 
ficers. I  told  him  I  was  willing  to  do  so,  but  I  have  heard  nothing 
on  it  since,  and  I  don't  know  exactly  what  has  happened;  but  I  do 
know  from  that  that  there  has  been  no  trial  of  the  case. 

The  Chairman.  You  mean,  the  arrest  was  made  in  April  1949  and 
there  has  been  no  trial  as  yet  ? 

Judge  MiLLEDGE.  I  am  not  certain  of  the  date,  but  there  has  been 
no  trial,  and  I  believe  that  is  the  approximate  date  of  the  arrest. 

Mr.  Halley.  Is  that  an  unusual  delay  on  an  information  for  gam- 
bling and  operating  a  handbook  ? 

Judge  MiLLEDGE.  Well,  in  my  circuit  court  we  have  criminal  juris- 
diction over  capital  offense;  but,  speaking  from  general  knowledge, 
I  would  say  this  type  of  case  that  was  not  unusual ;  no.  If  it  were 
some  insignificant  bookmaker  I  would  say  that  was  rather  longer 
than  usual. 

Mr.  Halley.  Are  you  properly  interpreted  in  saying  that  in  case 
of  an  important  law  breaker  there  is  a  lengthly  delay  in  the  adminis- 
tration of  justice  in  Dade  County? 

Judge  MiLLEDGE.  There  usually  seem  to  be  difficulties  of  one  sort 
or  another  that  are  always  encountered,  perhaps  sometimes  the  ab- 
sence of  witnesses  that  are  material  as,  for  example 

The  Chairman.  We  appreciate  the  absence  of  witnesses,  Judge. 

Judge  MiLLEDGE.  Yes.  I  understand  you  are  having  the  same 
difficulty. 

When  I  was  State  attorney  we  had  a  long  session  of  the  grand 
jury,  from  May  until  November.  We  called  in  the  members  of  the 
Miami  Beach  group  most  of  the  names  of  which  I  recall  from  having 
heard  them  read  out  here  by  you  this  morning.  Senator  Kefauver. 
We  called  one  of  the  accountants  of  the  group,  realizing,  of  course, 
that  we  were  giving  immunity,  but  we  didn't  think  that  was  giving 
him  anything  because  he  already  had  the  most  effective  immunity 
that  he  could  possibly  have.  As  a  result  of  that,  the  record  and  testi- 
mony of  one  of  the  partners,  we  returned  indictments  against  all  of 
the  others. 

Of  coui-se,  with  us,  criminal  prosecutions  except  in  capital  cases  are 
not  upon  indictment.  They  are  upon  information  by  the  county 
solicitor,  and  an  information  can  issue  directly  by  the  solicitor  or 
he  can  use  the  grand  jury  indictment  as  well  as  a  base.  He  is  not 
by  law  required  to  inform  simply  because  a  grand  jury  has  indicted, 
but  he  did.  He  informed  against  the  same  persons  whom  the  grand 
jury  indicted,  but  those  cases  never  came  to  trial,  and  I  understand 
ithat  one  of  the  witnesses,  the  accountant,  went  to  Brazil ;  and  it  is  my 
information  that  he  has  never  returned  here. 

The  Chairman.  What  is  his  name? 

Judge  MiLLEDGE.  Davis.  R.  Davis,  I  believe.  And  the  other  one, 
the  one  we  got  the  information  from,  Friedman,  got  ill,  I  undei^tand, 
and  had  to  spend  a  great  many  months  in  a  New  York  hospital. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  147 

I  understand  that  when  tlie  case  was  finally  called  it  was  called 
at  the  insistence  of  the  defendants  who  complained  of  the  long  delay 
in  not  being  brought  to  trial.  Of  course,  the  State  was  then  unable 
to  proceed  because  it  had  no  witnesses. 

Mr.  Halley.  Mr.  Chairman,  at  this  point  I  would  like  to  offer  in 
evidence  a  clipping  from  the  ]Miami  Daily  News  dated  July  11,  1950. 

The  Chairman.  That  will  be  received  and  admitted  as  exhibit  No. 
107  to  Judge  Mi  Hedge's  testimony.  (See  appendix,  p.  740.)  Do  you 
want  to  read  part  of  it? 

Mr.  Halley.  May  I?  This  is  headed  "County  Delays  Elisor  Con- 
ference," and  it  states  that  there  is  a  conference  pending  in  connection 
with  the  cases  of  15  men  arrested,  and  I  am  quoting : 

County  authorities  have  postponed  until  Thursday  their  conference  on  future 
action  in  tlie  cases  of  15  men  arrested  in  an  elisor  raid  on  the  Surfside  Hotel  at 
Miami  Beach  a  year  ago  last  April. 

The  conference  wdiich  has  been  called,  according  to  the  newspaper, 
will  be  with  the  assistant  of  the  county  solicitor — 

and  attorneys  for  the  S.  &  G.  syndicate.     The  latter  have  moved  to  suppress 
evidence  in  the  case  on  grounds  that  an  elisor  warrant  is  illegal. 

Do  you  know  w^ho  the  S.  &  G.  syndicate  are  ? 

Judge  MiLLEDGE.  Well,  that  is  the  popular  name,  shall  I  say,  of 
the  peoj^le  whom  I  referred  to  as  having  been  indicted  by  the  grand 
jury  in  the  long  term  of  1914  and  the  same  people  whose  names  I 
heard  read  this  morning  as  not  having  been  served  by  the  subpena  of 
this  committee. 

Mr.  Halley.  Are  they  the  people  to  whom  you  referred  as  having 
been  successful  in  many  cases  in  delaying  the  administration  of 
justice? 

Judge  MiLLEDGE.  I  wouldn''t  say  they  exclusively;  no. 

]Mr.  Halley.  They  and  others? 

Judge  MiLLEDGE.  And  others ;  yes. 

Mr.  Halley.  Do  you  know  whether  or  not  the  police  department  of 
Miami  Beach  cooperated  with  your  elisors  when  they  attempted  to 
serve  a  search  warrant? 

Judge  MiLLEDGE.  Well,  of  coui*se,  I  w^asn't  there 

Mr.  Halley.  Was  a  report  made  to  you  ? 

Judge  MiLLEDGE.  Yes ;  that  they  did. 

Mr.  Halley.  And  a  report  was  made  by  the  elisors,  by  your  elisors, 
and  their  official  return  to  you  ? 

Judge  MiLLEDGE.  That  is  correct. 

Mr.  Halley.  Would  you  state  what  the  official  return  to  you  was? 

Judge  MiLLEDGE.  Hostility  on  the  part  of  the  police  officers  in- 
volved. 

Mr.  Halley.  Were  there  any  police  officers  who  appeared  on  the 
premises  while  the  raid  was  in  progress  ? 

Judge  MiLLEDGE.  So  it  was  reported  to  me. 

Mr.  Halley.  Did  they  assist  the  elisors  ? 

Judge  MiLLEDGE.  No.    They  sought  to  hinder  them. 

Mr.  Halley.  Can  you  name  any  of  the  police  officers  who  sought  to 
iiinder  your  elisors  in  the  service  of  their  warrant? 

Judge  MiLLEDGE.  I  am  sorry;  I  don't  recall  their  names. 

Mr.  Halley.  Would  you  recall  a  name  if  I  mentioned  it? 

Judge  MiLLEDGE.  I  doubt  it.     I  doubt  if  I  would. 


148  lORG'ANIZED    CRilME   IN   mTER'STATE    COMMERCE 

Mr.  Halley.  I  show  you  a  name  and  ask  you  if  it  refreshes  your 
memory  [handing  document  to  witness]. 

Judge  MiLLEDGE.  The  city  of  Miami  Beach  you  are  speaking  of  ? 

Mr.  Halley.  Yes. 

Judge  MiLLEDGE.  I  am  sorry ;  I  don't  know  the  gentleman  and  even 
looking  at  it  I  am  not  sure.     I  don't  recall. 

Mr.  Halley.  But  you  are  definite  that  certain  police  officers  of 
Miami  Beach  did  impede  the  service  of  the  warrant  ? 

Judge  MiLLEDGE.  Yes,  if  I  can  believe  the  reports,  and  I  do  believe 
them  that  were  given  to  me. 

Mr.  Halley.  Thank  you.     I  have  no  further  questions. 

The  Chairman.  Judge  Milledge,  just  tell  us  about  the  problems. 
You  have  been  prosecutor  and  you  have  been  a  judge  for  5I/2  yeai-s  and 
a  State's  attorney  prior  to  that  time  and  then  a  circuit  court  judge 
before  then.     What  is  the  difficulty  ? 

Judge  Milledge.  Well,  Senator,  I  think  it  has  two  aspects  shall  I 
say.  There  is  a  technical  difficulty  in  some  of  it.  So  far  as  dealing 
with  this  situation  on  a  local  level  such  as  on  the  indictments  of  the 
people  whom  I  mentioned  a  while  ago  that  doesn't  represent  anything 
that  is  beyond  the  technical  power  of  the  local  people  to  deal  with. 
There  our  difficulty  is  our  unwillingness  to  do  so,  our  lack  of  desire 
to  do  so.  We  seem  always  to  have  the  misfortune  of  having  in  office 
at  any  given  time  some  people  who  want  to  enforce  these  gambling 
and  other  criminal  laws  dealing  with  organized  crime,  but  we  always 
have  some  who  wouldn't.  Then  the  thing  shifts  around  and  in  those 
offices  where  you  have  people  willing  to  do  something  they  go  out  and 
lackadaisical  fellows  take  their  place  and  the  converse  takes  place 
in  some  other  department. 

So,  you  always  have  some  willing  to  do  it  and  some  who  are  not. 
You  never  can  get  them  organized,  get  the  team  organized  at  any  one 
time  to  do  something.  It  isn't  entirely  the  fault,  in  my  opinion,  of 
any  one  officer.  It  is  a  combination  of  perhaps  the  judiciary,  or  the 
judiciary  perhaps  are  not  entirely  blameless  in  the  matter. 

The  Chaikman.  Why  is  the  judiciary  not  blameless? 

Judge  Milledge.  Well,  a  little  fear,  shall  I  say,  of  the  power  of  the 
racket  people.  People  who  hold  elective  offices  are  always  apparently 
a  little  concerned  about  re-election,  of  course,  and  the  power  of  the 
money  that  is  behind  the  rackets  and  the  fear  of  antagonizing  this 
business,  the  fear  that  so  much  money  will  be  put  behind  them  at  the 
next  election  that  they  will  be  defeated. 

The  Chairman.  You  mean,  it  is  notorious  in  Dade  County  that 
even  candidates  for  the  judiciary  apprehend  that  gangsters  of  great 
230wer  and  with  a  lot  of  money  might  be  able  to  adversely  affect  their 
elections  ? 

Judge  Milledge.  Of  course,  it  is  very  hard  for  me  to  speak  of  other 
people,  but  I  would  say  that  is  a  thought  that  exists  in  the  minds  of 
most  people  and  I  can  see  no  reason  for  making  an  exception  as  regards 
the  judiciary. 

Now,  I  don't  wish  to  infer  that  there  is  any  corruption  in  that  field. 
I  think  there  is  corruption  but  I  don't  think  it  is  that  department. 

The  Chairman.  Who  tried  the  matters  of  criminal  cases?  The  cir- 
cuit court  has  jurisdiction  of  felonies,  is  that  correct? 

Judge  Milledge.  Capital  felonies. 


ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE  149 

The  Chairman.  How  are  the  other  criminal  cases  tried? 

Judge  MiLLEDGE.  Well,  there  is  a  criminal  court  of  record  which  has 
jurisdiction  of  all  felonies  less  than  capital  felonies  and  a  court  of 
crimes  that  deals  with  misdemeanors.  However,  it  has  been  the 
practice  locally  for  a  long  time,  as  long  as  I  can  remember,  sort  of  an 
unofficial  division  of  this  business,  that  although  this  gambling  busi- 
ness or  violations  of  State  laws  by  either  gambling  which  is  a  mis- 
demeanor and  operation  of  a  gambling  outfit  which  is  a  felony  if  those 
things  occur  within  municipal  limits  they  are  treated  as  violations  of  a 
municipal  ordinance,  I  presume  to  get  the  revenue  from  the  fines.  So, 
the  only  prosecutions  that  are  had  are  had  under  the  municipal  ordi- 
nances and  the  court  uses  the  procedure  of  fine  with  the  person  fined 
going  back  and  operating  all  over  again. 

Now,  that  part  of  it  is  simply  one  of  attitude.  However,  I  believe 
this  is  a  field  in  which  no  matter  how  much  people  try  there  is  extreme 
difficulty  if  not  impossibility  in  coping  with  certain  aspects  of  this 
thing  as  I  found  out  myself  in  trying  to  ferret  out  some  information 
about  this  wire  service  and  as  a  result  of  which  I  drew  the  act  which 
is  presently  the  law  of  the  State,  presented  in  1945  and  1947  and 
finally  passed  in  1949. 

In  the  course  of  that  investigation  I  found  it  impossible  to  get 
hold  of  some  of  the  people  that  I  wanted  to  reach.  For  example, 
there  would  be  a  contract  made  for  a  leased  wire  from  say  New- 
York  to  Miami.  The  contract  was  made  by  people  who  aren't  here 
and  whom  I  couldn't  reach.  Of  course,  I  had  difficulty  in  reaching 
people  who  were  presumably  here.  For  example,  ther&  w^ere  certain 
names  with  which  I  got  familiar  but  wdiose  faces  I  was  never  able 
to  see  and  I  was  never  able  to  get  process  served  on  them  because 
when  process  was  turned  over  to  the  officers  they  told  me,  "We  heard 
of  those  names,  but  we  have  never  seen  their  faces." 

There  were  names  like  Walter  Keough  and  Haggerty.  Their  names 
appeared  on  papers  of  dealing  with  these  wire  services  and  I  think 
there  was  somebody  named  O'Brien.  I  would  hear  about  these  people 
but  I  never  could  and  had  no  means  of  apparently  ever  being  able 
to  get  hold  of  those  people  and  get  them  either  before  me  on  the 
processes  of  the  State  attorney  or  the  processes  of  the  grand  jury. 

You  are  greatly  handicapped  when  you  find  what  you  need  in 
order  to  protect  the  interests  of  the  State  of  Florida  and  you  can't 
even  get  hold  of  the  people  whom  it  is  necessary  for  you  to  get  hold 
of  in  order  to  lay  out  some  kind  of  a  program,  legislative  or  otherwise. 

So,  on  that  aspect  of  it  when  you  get  into  this  part  of  it  that  is 
interstate  I  think  you  will  find  that  thoroughly  honest  and  unques- 
tionably competent  men  like  the  present  attorney  general  of  Florida 
are  up  against  some  insuperable  difficulties  because  of  the  power, 
because  the  power  extends  as  far  as  the  State  line  and  the  other  end 
is  always  someplace  else  and  he  can't  get  hold  of  it.  And,  to  a  limited 
extent  I  found  that  was  true,  too. 

The  Chairman.  So,  at  least  as  to  the  interstate  use  of  wire  serv- 
ices in  connection  with  gambling  and  criminal  activities  you  feel 
that  the  only  way  it  can  be  handled  is  by  the  Federal  Government 
putting  some  blocks  in  the  way  ? 

Judge  MiLLEDGE.  Yes.  I  think  there  are  a  few  people  who  hon- 
estly would  ask  the  Federal  Government  to  take  over  the  whole  field 
of  organized  gambling,  but  I  don't  think  it  is  necessary.     However, 


150  lORGANIZED    ORilME   IN    INTERSTATE    COMMERCE 

a  thing  like  this  wire  service,  communications  without  which  there 
can  hardly  be  any  large  scale  gambling  I  think  would  be  extremely 
difficult,  if  it  is  too  much  to  say  impossible,  for  the  State  to  handle 
because  the  thing  you  are  trying  to  deal  with  is  not  confined  to  the 
State.  I  think  it  is  the  same  problem  as  interstate  commerce  or 
anything  else. 

The  Chairman.  Judge,  I  have  your  quotation  of  the  comment  you 
made  charging  the  Dade  County  Grand  Jury  which  I  think  is  some- 
what of  a  gem  and  I  would  like  to  read  it  to  you  and  see  if  you  made 
this  statement : 

Going  to  the  multiraillion  dollar  rackets  they  could  not  exist  unless  officers 
charged  with  law  enforcement  were  not  afraid  of  gang  overlords'  money  than 
the  people  who  elected  them. 

Is  that  what  you  said  ? 

Judge  MiLLEDCxE.  I  certainly  did  and  nothing  has  happened  since 
to  change  my  mind. 

The  Chairman.  You  think  that  the  people  charged  with  law  en- 
forcement here  in  this  section  are  more  afraid  of  gang  overlords  than 
they  are  of  the  people  who  elected  them  ? 

Judge  MiLLEDGE.  Yes.  I  think  that  is  perhaps  changing  a  little 
bit.     I  think  public  opinion  here  is  changing  for  the  better. 

The  Chairman.  So  I  take  it  the  chief  difficulty  has  been  in  the 
enforcement  branch,  that  is,  the  people  who  have  to  enforce  the  law, 
the  sheriff  and  the  police  department,  or,  would  you  specify  where 
your  chief  difficulty  has  been  ? 

Judge  MiLLED(3E.  Well,  personally  I  do  not  mind  specifying,  Sen- 
ator, but  I  would  rather  you  would  excuse  me  from  not  being  any  more 
specific  about  it. 

As  I  heard  Mr.  Morris  say  a  while  ago,  of  course,  the  sheriff  is  the 
chief  law-enforcement  officer  but  frankly  I  don't  think  you  can  lay 
everything  at  the  sheriff's  door.  I  think  the  responsibility  has  to  be 
divided  a  little  bit  more  than  that.  Our  municipal  police,  our  prose- 
cutors, and  our  courts,  they  are  all  a  team  of  law  enforcement  and  if 
you  get  the  whole  team  working,  I  mean,  if  you  do  not  get  the  whole 
team  working  it  is  very  difficult  to  get  anything  done. 

The  Chairman.  The  public  too  is  a  part  of  the  team,  isn't  it? 

Judge  MiLLEDGE.  Yes. 

The  Chairman.  Senator  Hunt? 

Senator  Hunt.  Judge,  do  your  State  laws  set  out,  as  in  some  State 
laws,  that  where  a  sheriff  or  a  prosecuting  attorney  has  cognizance 
or  is  aware  of  violations  under  his  jurisdiction,  whether  a  complaint 
is  made  or  not,  he  himself  is  subject  to  fine  and  imprisonment  if  he 
doesn't  prosecute  on  his  cognizance  ? 

Judge  MiLLEDGE.  I  know  of 

Senator  Hunt.  Your  law  doesn't  provide  that? 

Judge  MiLLEDGE.  I  know  of  no  specific  provision  of  that  character. 

Senator  Hunt.  It  would  be  rather  helpful  if  you  had  that  law  in 
your  Florida  law  books,  wouldn't  it  ? 

Judge  MiLLEDGE.  Yes ;  I  believe  it  would.  Senator.  I  think  it  would 
help. 

Senator  Hunt.  I  noted  in  last  night's  paper  that  your  State  Senate 
now  is  taking  an  interest  in  this  matter  and  has  appointed  a  com- 
mittee of  thi-ee  to  look  into  the  situation  to  see  what  the  State  itself 


ORGANIZED    CRIME:  IN   INTERSTATE    COMMERCE  151 

can  do  on  this  matter.  I  will  leave  this  thou<^ht,  so  that  perhaps  yovi 
mi^ht  want  to  sn^ifgest  any  laws  that  might  help  the  situation. 

Judge  MiLLEDGE.  Thank  you  very  much.  I  certainly  will  pass  that 
on. 

Senator  Hunt.  Judge,  you  speak  of  being  unable  to  get  in  contact 
with  or  subpena  those  people  operating  on  a  Nation-wide  basis.  How- 
ever, I  am  sure  you  do  feel  that  those  people  cannot  operate  Nation- 
wide and  into  Florida  without  their  local  contacts  here. 

Judge  MiLLEDGE.  That  is  true,  of  course. 

Senator  Hunt.  Let's  talk  for  a  few  minutes,  Judge,  about  the  eco- 
nomics of  the  situation.  Do  you  have  many  people  in  this  area  who 
think  that  gambling  brings  business  or  creates  business  or  promotes 
prosperity  or  is  good  for  the  community  ? 

Judge  MiiXEDGE.  Yes ;  we  do,  but  we  don't  have  nearly  as  many  of 
them  fortunately  as  we  used  to  have.  I  believe  at  one  time,  perhaps  10 
years  ago,  it  would  be  fair  to  say  that  a  majority  of  the  people  here 
felt  that  way.  Whatever  they  thought  about  the  other  aspects  of  it 
tliey  tended  to  blink  at  it  as  a  sort  of  economic  necessity,  as  I  suppose 
some  of  us  do  about  the  Florida  divorce  laws  as  that  sort  of  thing.  I 
am  certain,  however,  that  the  proportion  of  the  people  who  believe 
that  is  rapidly  diminishing  and  I  would  venture  the  guess  that  the 
majority  of  the  people  here  now  are  convinced  that  it  is  an  economic 
loss. 

Senator  Hunt.  Well,  take  here  in  this  area^ — we  had  some  figures  on 
it — it  goes  up  to  millions  yearly  and  I  think  the  people  of  your  com- 
munity if  they  don't  understand  should  know  that  that  "take''  doesn't 
stay  in  Florida,  that  it  goes  to  the  heads  of  the  syndicates  primarily 
in  New  York,  Cleveland,  Chicago,  and  Los  Angeles,  and  so  forth. 

Just  for  the  information  of  the  public  here  in  Florida,  you  do  have 
here  in  Florida  a  sales  tax,  don't  you  ? 

Judge  MiLLEDGE.  Yes. 

Senator  Hunt.  I  will  make  the  statement,  and  this  is  based  on 
actual  ex])erience,  that  if  you  could  eliminate  gambling  in  this  area 
you  would  find  that  those  millions,  roughly  estimated  at  $15,000,000 
a  year  from  this  particular  area  would  go  into  legitimate  channels  of 
trade.  It  would  not  only  be  far  more  beneficial  to  your  merchants 
and  to  your  general  business  activities  than  the  money  that  is  spent 
on  gambling,  but  it  would  also  be  very  beneficial  to  your  local  gov- 
enunent.  Not  knowing  how  your  taxes  are  divided,  if  it  all  goes  to 
the  State  or  not,  I  say  it  would  be  most  helpful  if  a  tax  could  be  col- 
lected on  that  vast  sum  of  money  that  goes  out  of  your  State  for 
gambling,  that  if  you  didn't  have  gambling  it  would  go  into  legitimate 
trade  channels. 

I  make  this  statement  advisedly  because  I  had  the  same  experience 
in  my  State  where  we  watched  it  carefully,  and  where  gambling  was 
closed  down  the  sales-tax  situation  and  general  business  conditions 
improved,  and  improved  immediately. 

I  think  that  might  be  a  thought  that  you  might  get  over  to  your 
people  that  would  be  somewhat  helpful. 

Judge  MiLLEDGE.  I  am  sure  it  will. 

Senator  Hunt.  I  haven't  any  other  questions. 

The  Chairman.  Judge,  do  the  other  members  of  the  judiciary  in 
Dade  County  in  this  section  share  your  general  views  about  the  prob- 
lems you  have  testified  about  ? 

68958 — 50 — pt.  1 ill 


152  ORGANIZED   CHIME'  IN"   INTERSTATE   COMMERCE 

Judge  MiLLEDGE.  I  am  not  sure,  Senator.    I  believe  tliey  do. 
The  Chairman.  Judge,  we  appreciate  your  appearance  before  the 
committee  and  thank  you  for  the  information  you  have  given  us. 

TESTIMONY  OF  DANIEL  P.  SULLIVAN,  OPERATING  DIRECTOR, 
CRIME  COMMISSION  OF  GREATER  MIAMI 

The  Chairman.  Mr.  Sullivan,  do  you  solemnly  swear  that  the 
testimony  you  will  give  this  committee  will  be  the  whole  truth  and 
nothing  but  the  truth,  so  help  you  God  ? 

Mr.  Sullivan.  I  do. 

Mr.  Halley.  What  is  your  occupation,  Mr.  Sullivan  ? 

Mr.  Sullivan.  I  am  operating  director  of  the  Crime  Commission 
of  Greater  Miami. 

Mr.  Halley.  Would  you  state  for  the  record  what  the  Crime  Com- 
mission of  Greater  Miami  is;  what  is  the  organization,  its  organiza- 
tion, and  so  forth? 

Mr.  Sullivan.  The  Crime  Commission  of  Greater  Miami  is  a  civic 
organization  that  was  founded  by  representatives  of  about  90  civic 
clubs.  They  held  a  law-enforcement  session  in  the  Mayfair  Theatre- 
in  March  1948.  That  session  was  addressed  by  Attorney  General  Tom 
Clark,  and  the  delegates  at  that  convention  by  actual  vote  agreed  to 
form  a  law-enforcement  agency,  a  crime  commission,  for  the  purpose 
of  engendering  a  better  respect  for  law  and  attempt  to  get  better  law 
enforcement  in  this  area. 

Mr.  Halley.  When  did  you  become  the  operating  director  ? 

Mr.  Sullivan.  In  August  1948. 

Mr.  Halley.  Will  you  state  for  the  record  your  experience  and 
qualifications  prior  to  becoming  operating  director  of  the  Crime  Com- 
mission of  Greater  Miami  ? 

Mr.  Sullivan.  I  was  special  agent  of  the  FBI,  supervisor  and  agent 
in  charge  for  IQi/^  years,  beginning  with  1932  up  to  the  latter  part' 
of  1942. 

Mr.  Halley.  By  "the  FBI"  you  mean  the  United  States  Department 
of  Justice,  Federal  Bureau  of  Investigation  ? 

Mr.  Sullivan.  That  is  right.  Subsequently,  I  was  director  of  plant 
protection  at  the  Consolidated-Vultee  Aircraft  plant  here  in  Miami 
all  during  the  war,  having  charge  of  the  responsibility  for  the  investi- 
gation of  sabotage  and  antiespionage  and  plant  security  and  investiga- 
tion at  the  plant.  I  subsequently  was  employed  as  chief  investigator 
by  the  Florida  State  Racing  Commission  during  the  year  1945-46. 

Mr.  Halley.  Mr.  Sullivan,  have  you  prepared  certain  exhibits  show- 
ing the  known  gangsters  living  and  operating  at  Miami  Beach? 

Mr.  Sullivan.  At  Miami  Beach  and  elsewhere  in  Dade  County  and 
in  Broward  County. 

Mr.  Halley.  Would  you  produce  those  charts  ? 

Mr.  Sullivan  [produces  three  charts] .  This  exhibit  (No.  109,  p.  740) 
is  not  to  scale.  It  was  designed  to  give  the  committee  an  idea  as  to  the 
general  location  of  the  major  gambling  operations  in  Broward  County 
in  relationship  to  the  city  of  Miami  and  the  general  area.  The  center 
of  that  chart  shows  the  United  States  Federal  Highway,  which  is  the 
principal  highway  running  north  out  of  Miami.  Just  beyond,  a 
matter  of  a  hundred  feet  or  so,  north  of  the  Dade  County  line,  iiii 


ORGANIZED   CRIME   IN   INTERSTATE   COMMERCE  153 

Broward  County,  on  the  right  side  of  the  highway  is  located  the 
Colonial  Inn.  Immediately  next  to  the  Colonial  Inn  is  the  Gulf  stream 
Kacetrack,  which  goes  to  the  corner  of  the  United  States  Federal 
Hif^hway  and  Hallandale  Beach  Road.  The  Club  Greenacres  is  located 
about  a  mile  and  a  half  west  of  the  United  States  Federal  Highway 
on  the  Hallandale  Beach  Koad,  and  almost  directly  across  from  the 
Gulfstream  Racetrack  -property  is  located  what  is  called  the  Farm. 
Going  east  from  the  Federal  Highway  about  a  mile  and  a  quarter, 
toward  the  ocean,  is  located  the  CUib  Boheme.  These  three  places- 
Colonial  Inn,  Greenacres,  and  Club  Boheme— are  the  three  principal 
gambling  operations  in  Broward  County. 

I  might  say  that  the  Colonial  Inn  here  is  not  operating  as  a  gambling 
place.  In  the  spring  of  1948  an  injunction  suit  was  brought  against 
it,  and  an  injuction  was  granted  and  it  closed  gambling.  It  has  since 
been  run  as  a  dance  hall  or  night  club  for  the  last  two  seasons.  The 
property  was  formerly  owned  by  Jake  Lansky,  of  Broward  County. 

The  Club  Boheme  subsequent  to  May  1948  began  gambling  opera- 
tions with  the  same  gi-oup  that  formerly  controlled  the  gambling  at 
Colonial  Inn. 

Mr.  Halley.  In  your  subsequent  testimony  you  will  identify  the 
people  that  you  are  talking  about? 

Mr.  Sullivan.  Yes.  I  just  merely  want  to  give  you  the  general 
picture  now.  The  Club  Greenacres  is  operated  by  generally  the  same 
group  which  formerly  was  connected  with  the  Colonial  Inn  but  who 
subsequently  took  over  the  gambling  at  the  Club  Boheme.  The 
Farm  is  a  large  abandoned  night  club  and  gambling  house.  Orig- 
inally it  was  called  the  Plantation.  In  the  late  thirties  it  burned 
down.  Subsequently  a  new  building  was  placed  on  it,  and  they  called 
it  the  Farm  in  the  year  1939.  In  1940  an  injunction  suit  was  brought 
against  it  for  gambling  operations,  and  a  permanent  injunction  was 
granted. 

In  the  year  1945-46  I  was  with  the  State  racing  commission  and 
I  made  an  investigation  of  wire  service.  At  that  time  I  found  that 
the  service  was  originating  in  Baltimore,  Md.-,  and  a  line  was  running 
all  the  way  down  through  Maryland,  Virginia,  North  Carolina,  South 
Carolina,  Florida,  and  into  Miami.  On  this  line  there  were  certain 
drops  where  customers  took  the  service  from  the  wires  and  then  dis- 
seminated it  locally.  At  that  time  the  principal  places  for  the  dis- 
semination of  the  information  received  from  this  line,  and  which  was 
broadcast  by  the  local  distributors  to  bookies,  were  located  at  two 
points:  One  in  Dade  County  at  the  Dade  County  Newsdealers  on 
Northwest  First  Court  across  from  the  courthouse,  and  the  other  place 
was  located  at  the  Farm.  The  information  that  comes  in  on  this  wire, 
which  is  a  drop  wire,  is  received  by  ticker.  The  local  distributor  then, 
through  an  arrangement  at  that  time  made  with  the  Western  Union 
Co.,  obtained  leased  wires,  and  through  the  Western  Union  connected 
the  customers,  generally  made  up  of  bookies,  with  the  Western  Union 
frame.  Then  at  the  location  where  the  information  is  received  over 
this  interstate  wire  there  would  be  a  hook-up  whereby  a  man  or  an- 
nouncer could  speak  into  a  microphone  and  that  microphone  was  in 
turn  connected  with  the  multiplicity  of  wires  appearing  on  the  frame 
of  the  Western  Union,  so  that  his  voice  could  be  heard  simultaneously 
in  gambling  places  and  any  other  places  which  might  pay  for  this 
service.    The  Farm  at  that  time  was  set  up  so  that  this  simultaneous 


154  ORGANIZED    CRIME'   IN    INTERSTATE    COMMERCE 

broadcast  to  bookies  could  be  made  from  that  location  as  well  as  at 
the  Dade  County  Newsdealers.  It  was  explained  to  me  that  the  pur- 
pose of  that  was  so  that,  in  the  event  the  county  authorities  of  Dade 
County  should  by  some  action  interfere  or  interrupt  the  wire  service 
here,  it  could  be  carried  on  from  the  broadcast  emanating  in  Broward 
County  at  the  Farm. 

In  the  year  1946  there  was  one  service  company  that  brought  in  the 
wire  service  and  distributed  it.  It  was  called  the  Hollywood  News 
Service.  It  changed  its  name  to  Miami  News  Service.  Early  in  that 
year  there  was  a  service  started  up  in  the  name  of  Trans-America 
News  &  Publishing  Co.,  which  was  a  Chicago-operated  race-wire  serv- 
ice, running  in  competition  with  the  established  Continental  Press.  A 
leased  wire  was  established  from  Cicero,  111.,  to  a  place  located  in  Miami 
Shores,  just  north  of  Miami,  at  tlie  Graham  Press.  Another  wire  tele- 
meter line  from  the  Graham  Press  to  New  York  City  and  return  was 
also  established  at  that  location.  The  Trans-America  went  into  busi- 
ness and  subsequently,  early  in  the  year,  around  June  or  July  1947, 
after  Trans- America  was  established  and  had  established  other  similar 
services  in  other  parts  of  the  country,  and  after  James  Ragan  was 
killed,  they  announced  that  they  would  retire  from  the  wire-service 
business.  At  that  time  the  facilities  that  had  been  established  in  the 
Graham  Press  were  not  released.  These  facilities  were  turned  over 
and  made  a  part  of  the  established  Continental  Press  Service. 

At  the  present  time  I  believe  I  am  right  in  saying  that  the  Graham 
Press  is  not  used  as  a  major  distribution  point  for  the  dissemination 
of  racing  information.  It  is  merely  used  as  a  drop,  one  of  several 
drops.  In  1946  there  were  approximately  22  outlets  in  the  Greater 
Miami  area  for  wire  service.  Within  a  year  that  number  liad  jumped 
to  between  120  and  125  in  the  period  of  4  years. 

Mr.  Hallet.  In  the  meantime  wire  service  was  made  illeaal  in  the 
State  of  Florida? 

Mr.  SuLLTVAN.  This  was  up  to  the  time  they  cut  them  hist  year,  in 
December  1949.  I  think  there  will  be  testimony  to  the  effect  tluit  tlie 
wire  service  was  cut  off  throughout  the  State. 

The  identities  of  the  individuals  that  are  connected  with  Colonial 
Inn,  Club  Greenacres,  and  the  Club  Bolieme,  I  think,  can  probably 
be  handled  in  the  next  chart. 

The  Chairman.  We  would  like  to  have  this  chart  and  the  succeeding 
charts  marked  as  exhibit  Nos.  108, 109,  and  110  to  the  testimony  of  this 
witness.     (See  appendix,  pp.  740-742.) 

Mr.  Sullivan.  I  would  like  to  stress  the  fact  that  the  Graham  Press 
is  not  to  my  knowledge  a  bookmaking  operation;  it  was  merely  one 
outlet. 

Mr.  Halley.  That  is  the  Graham  Press  ? 

Mr.  Sullivan.  That  is  right — the  Graham  Press. 

Mr.  Sullivan.  Now,  this  chart  (exhibit  No.  108,  ]).  741)  is  generally 
concerned  with  the  major  gambling  operations  in  Broward  County.  It 
shows  certain  points  of  gambling  o])erations  in  Palm  Beach  and  Dade, 
Counties.  The  Colonial  Inn  was  a  major  gambling  o))eration  in  Bro-' 
ward  County  until  it  was  closed  in  May  of  1948.  The  gambling  in  that 
l)lace  was  controlled  by  Jake  Lansky  and  his  brother,  Meyer  Lansky ; 
Joseph  A.  Doto,  alias  Joe  Adonis,  Vincent  Alo,  alias  Jimmie  Blue  Eyes, 


ORGANIZED    CRIME!   IN    INTERSTATE    COMMERCE  155 

Frank  Erickson,  Bert  Brings,  Claude  Litteral,  and  Samuel  L.  Bratt. 
Originally,  this  gambling  operation  was  a  joint  venture  between  this 
group  of  New  York  gamblers  and  a  group  of  Detroit  gamblers.  That 
existed  up  through  the  year  1946.  A  group  of  Detroit  gamblers,  headed 
by  Mert  Wertheimer,  Reubin  Mathews,  and  Danny  Sullivan,  had  about 
321/2-percent  interest  in  the 

The  Chairman.  I  take  it  that  you  do  not  hesitate  to  explain  that 
he  is  not  of  your  branch  of  the  Sullivan  family  ? 

Mr.  Sullivan.  He  is  Red  Irish.  They  controlled  321/^  percent  of  the 
operation  of  the  Colonial  Inn.  Subsequent  to  that  year  the  interest 
of  that  particular  group  of  Detroit  gamblers  was  taken  over  and 
absorbed  by  the  remaining  operator  from  New  York.  The  o})- 
erations  of  the  Colonial  Inn  are  akin  to  the  operations  in  the  Club 
Greenacres.  Ninety  percent  of  the  ownership  of  Greenacres  is  in  the 
operators  of  the  Colonial  Inn.  The  other  10  percent  of  the  Club 
Greenacres  is  divided  among  two  other  operators  who  do  not  appear 
in  the  Colonial  Inn.  The  Club  Greenacres  is  considered  or  has  been 
considered  in  past  years  as  a  sawdust  joint,  but  in  recent  years  it 
has  been  dressed  up  and  it  more  or  less  caters  to  the  big-time  gamblers. 
The  principal  income  from  the  Greenacres  comes  from  the  "money 
crap  game,"  the  New  York  crap  game,  and  that  New  York  crap  game  is 
controlled  by  William  G.  Bischoff,  alias  Lefty  Clark.  Joe  Massei,  of 
Detroit,  bankrolled  Bischoff. 

Mr.  Halley.  The  chart  shows  that  both  of  them  lived  in  Detroit ; 
is  that  right  ? 

Mr.  Sullivan.  Yes. 

Mr.  Halley.  Does  one  of  them  maintain  a  local  residence  and  place 
of  business  in  Miami  ? 

Mr.  Sullivan.  Yes;  but  I  would  like  to  reach  that  later  on, 

Mr.  Halley.  Will  you  reach  that  later  on  ? 

Mr.  Sullivan.  Yes.  These  same  two  men,  as  will  appear  on  this 
chart,  are  interested  in  the  gambling  operations  in  ^liami  Beach 
called  the  Club  Collins,  located  at  Twentieth  and  Collins  Avenue, 
Miami  Beach.  That  club  operated  up  until  2  months  ago.  The 
principal  game  was  "skin  game,"  and  in  that  were  Jack  Friedlander, 
Newark;  Joseph  Massei,  Detroit;  William  Bischoff,  alias  Lefty 
Clark,  Detroit ;  Trigger  Mike  Coppola,  New  York  City ;  and  Bennie 
Kaye,  New-  York  City. 

Friedlander,  one  of  the  operators  of  the  Club  Collins,  also  is  a  part- 
ner in  the  Island  Club  gambling  house  located  at  Sunny  Isles  in 
Dade  County,  in  the  county  area.  That  operation  is  controlled  by 
Jack  Friedlander,  Samuel  P.  Cohen,  a  member  of  the  S.  &  G.,  Herbert 
"Pitsy"  Manheim,  of  Detroit,  and  Sam  Gameboy  Miller,  of  Cleveland, 
Ohio.  Up  to  the  year  1948  Frank  Erickson  and  Bert  Briggs  each  had  a 
15  percent  interest  in  the  Club  Greenacres  and  the  Colonial  Inn  op- 
eration. In  turn  Erickson  controlled  the  gambling  casino  concession 
at  the  Boca  Raton  Club  in  Palm  Beach  County. 

Erickson's  operations  in  Dade  County  have  been  carried  on  at  the 
Wofford  Hotel,  beginning  in  1941  through  1946.  Also  at  the  Roney 
Plaza  Hotel  for  a  part  of  one  season  and  at  the  Boulevard  Hotel  from 
1946  to  1950.  The  gambling  operations  of  Erickson  at  these  three 
places  are  not  similar  to  the  normal  gambling  operations  found  in  the 
hotels  on  Miami  Beach.    They  have  gambling  concessions  at  most  of 


156  lORG'ANIZED   CHIMB   IN   INTERSTATE    COMMERCE 

the  hotels  and  these  concessions  are  leased  out  for  sums  ranging  from 
$2,500  to  $50,000  per  season.  That  is  merely  a  gambling  monopoly 
given  to  one  or  more  men  who  have  the  privilege  of  establishing  book- 
making  operations  within  the  hotels  and  the  cabanas  outside  of  the 
hotels. 

Erickson's  interest  in  the  Wofford  Hotel  was  not  in  the  gambling 
concession  in  the  hotel.  That  was  used  as  headquarters  for  his  agents, 
consisting  of  Bert  Briggs,  L.  A.  Cantor,  and  Jackie  Zeldow.  Erickson 
used  the  Wofford  Hotel  as  a  base  of  operations  for  the  handling  of 
large  lay-off  bets  or  moneys  received  by  him  in  New  York,  New  Jersey, 
and  possibly  at  other  points.  Some  of  that  money,  of  course,  would 
be  taken  to  the  racetrack  and  put  through  the  mutuel  machines. 
That  was  done  for  the  purpose  of  laying  off  bets  wagered  on  a  partic- 
ular horse.  That  was  more  or  less  a  headquarters  for  the  racetrack 
activities  of  Erickson  and  his  agents.  The  same  condition  existed  at 
the  Boulevard  Hotel.  The  Eoney  Plaza  Hotel,  however,  was  con- 
sidered to  be  a  gambling  concession.  That  was  taken  over  for  the 
purpose  of  accepting  gambling  bets  from  customers  located  inside  the 
hotel  and  in  the  cabanas  outside  on  the  ocean. 

The  operators  of  the  Colonial  Inn  are  reflected  in  the  operations 
of  the  Louisiana  Mint  Co. — the  joint  gambling  operations  of  that 
company  are  between  that  company  and  Phil  Kastel  and  Jack  Lansky, 
of  Broward  County.    Phil  Kastel  is  of  New  Orleans. 

There  has  been  testimony  put  in  the  record  in  a  previous  hearing 
as  to  the  principal  gambling  operations  of  the  Frank  Costello  Syndi- 
cate in  the  New  Orleans  area,  particularly  in  the  slot  machine  business. 

I  think  that  more  or  less  generally  covers  the  background  of  the 
gambling  phase. 

(Puts  up  third  chart.) 

Mr.  Sullivan.  This  chart  shows  three  hotels  on  Miami  Beach — the 
Wofford  Hotel,  the  Grand  Hotel,  and  the  Sands  Hotel.  These  three 
particular  hotels  were  selected  to  identify  the  various  persons  who 
frequented  and  used  these  hotels  as  a  meeting  place. 

The  history  of  the  Wofford  Hotel  is  found  m  a  lease  that  was  signed 
by  Thomas  J.  Cassara  and  Neal  Lang  of  Miami  Beach  on  November 
1,  1940,  for  a  period  of  10  years. 

Cassara  is  an  attorney.     He  graduated  from  the  National  Law 
School  in  Washington  and  he  lived  in  New  London,  Conn.     Neal  Lang  j 
was  at  that  time  manager  of  the  Raleigh  Hotel  in  JNIiami  Beach,  and  ' 
Cassara  was  also  there  employed. 

Lang,  in  a  subsequent  suit  filed  in  the  circuit  court,  declared  that 
he  never  had  any  interest  in  the  operation  of  the  Wofford  Hotel,  that 
he  signed  the  lease  merely  as  an  accommodation,  and  that  he  did  so  at 
the  instance  of  Tom  Cassara.  The  hotel  was  operated  by  Cassara  for 
a  period  of  1  year,  and  then  subsequently  there  was  a  contract  signed 
between  Abe  Allenberg  and  Frank  Erickson  whereby  they  agreed  to 
put  up  certain  money  to  Cassara  and  take  over  the  operation  of  the 
hotel.  Ten  thousand  dollars  was  put  up  by  Allenberg  and  ten  thou- 
sand by  Frank  Erickson. 

In  the  year  1940  Cassara  had  arranged  for  the  building  of  a  hotel 
called  the  Raleigh  Hotel  in  Miami  Beach.  Testimony  in  a  case  in 
the  circuit  court  was  to  the  effect  that  he  borrowed  $25,000  from  John 
Angersola,  alias  John  King,  of  Cleveland,  Ohio.     He  also  testified  that 


,0RGANIZE1>   CRilME   IN    INTERSTATE    COMMERCE  157 

hv  had  at  different  times  borrowed  money  in  different  sums  and  at 
(liti'erent  places  from  Jimmie  Kelley,  the  father-in-law  of  Anthony 
Ciirfano,  alias  Little  Augie,  and  several  others.  The  testimony  was 
tluit  Anthony  Carfano  personally  had  no  interest  in  the  hotel.  How- 
ever, in  the  year  1941  Cassara  left  and  went  to  Chicago.  Abe  Allen- 
l)erg  became  resident  manager  of  the  hotel  and  Max  Marmorstein  be- 
came the  manager  and  operator  of  the  hotel.  Max  Marmorstein  is  a 
liotel  operator  from  Cleveland,  Ohio.  He  maintains  his  office  in  the 
Ninth  and  Chester  Building  in  Cleveland,  Ohio,  and  his  telephones 
were  taken  out  of  that  office  in  1943  because  they  were  connected  with 
gambling  operations.  That  building  is  the  headquarters  of  the  Em- 
pire News  Service  controlled  by  "Mushy"  Wexler. 

Subsequent  to  1941  Otto  Lorentzen,  a  nephew  of  John  Angersola, 
John  Cardone,  another  relative  of  John  Angersola,  Abe  Allenberg, 
Max  Marmorstein,  John  Angersola  and  a  brother,  Fred  Ang,ersola, 
and  Anthony  Carfano  were  set  out  as  being  partners  in  the  operation 
of  that  hotel.  Carfano  himself  signed  correspondence  from  the  hotel 
as  managing  director.  The  hotel  thereafter  became  a  meeting  place 
for  well-known  racketeers  and  gangsters  from  all  over  the  country. 

Erickson,  Bert  Briggs,  Al  Cantor,  Jackie  Zeldow,  and  Frank 
Strader  used  the  Wofford  Hotel  as  their  headquarters  for  their  "on- 
track"  gambling  operations. 

At  that  hotel  large  private  gambling  games  took  place.  The  par- 
ticipants in  these  games  were,  among  others.  Little  Augie;  John 
Angersola,  alias  John  King ;  Joe  Massei,  of  Detroit ;  Charles  Fischetti, 
of  Chicago ;  Angelo  De  Carlo,  alias  Gyp  De  Carlo,  New  Jersey ;  Alfred 
"Big  Al"  Polizzi ;  Max  Welsberg ;  Alfred  "Poagy"  Toriello,  of  New 
York  City  and  Providence;  Joe  Burnstein,  of  Detroit;  and  Trigger 
Mike  Coppola  of  New  York  City. 

Among  the  clientele,  guests,  and  associates  who  frequented  the  place 
were  Joseph  A.  Doto,  alias  Joe  Adonis ;  Meyer  Lansky ;  Vincent  Alo, 
alias  Jimmie  Blue  Eyes,  from  New  York  City;  Frank  Costello;  George 
Angersola,  of  Cleveland ;  Romeo  Civetta  and  Tony  and  Carlos  Civetta, 
all  of  Cleveland,  Ohio;  Alfred  Polizzi,  Cleveland;  Abner  "Longie" 
Zwillman,  Newark,  N.  J. ;  Nick  Delmore,  Elizabeth,  N.  J. ;  Nick  Bravos, 
Chicago ;  Willie  Moretti,  Bergen  County,  N.  J. ;  Joe  Di  Carlo,  of 
Youngstown,  Ohio;  Joseph  Jasper  Aiello,  alias  Fats,  of  Youngstown; 
Nicholas  P.  Tamburello,  alias  Nicoline,  Youngstown ;  Frank  De  Fil- 
lipo,  New  Jersey;  Herman  Stark,  of  New  York  City;  William  G. 
Bischoff,  alias  Lefty  Clark,  of  Detroit. 

I  have  the  criminal  records  here  of  all  of  them. 

The  Chairman.  We  would  like  to  have  these  all  filed  as  one  exhibit 
to  your  testimony. 

(The  photographs  and  criminal  records  referred  to  by  Mr.  Daniel 
Sullivan  are  on  file  with  the  committee  as  exhibit  No.  111.) 

Mr.  Sullivan.  I  have  here  a  number  of  them,  which  I  won't  go 
over.  I  will  turn  them  over  to  the  reporter.  I  have  some  other  things 
I  could  mention  in  passing.  For  instance,  I  have  a  photograph  of  the 
home  of  John  Angersola,  5440  La  Gorce  Drive,  Miami  Beach.  Fla. 
I  have  a  photograph  of  the  home  of  Charles  Fischetti,  6475  Allison 
Road,  Allison  Island,  Miami  Beach,  Fla. ;  a  photograph  of  the  home 
of  Alfred  "Poagy"  Toriello,  of  New  York  City  and  Providence,  at 
8842  Hawthorne  Avenue,  Surf  side,  Fla. 


158  lORG'ANIZED    ORIEVLE    IN    IjVTE'R'STATE    COMMERCE 

The  Chairman.  Let  us  not  mix  them  up,  but  if  any  of  the  members 
of  the  press  want  to  make  duplicates  of  the  photographs  of  any  of  the 
palatial  homes  they  have  the  committee's  permission  to  do  so.  Pass 
them  around  to  the  ijress  tables. 

Mr.  Sullivan.  Among  the  persons  that  I  mentioned  in  this  testi- 
mony was  Joe  Burnstein,  of  Detroit,  Mich.  Burnstein  is  one  of  three 
brothers,  concerning  whom  there  has  been  some  testimony,  I  believe, 
before  the  committee.  He  has  been  located  here  at  different  times 
in  the  Miami  area,  and  in  the  past  years  he  was  part  owner  of  the 
lounge  at  the  Albion  Hotel.  Telephone  calls  have  been  traced  from 
Mickey  Cohen's  telephone  in  New  York  City  to  the  telephone  located 
in  that  lounge. 

In  the  year  1949  Burnstein  became  the  manager  of  the  Max  Cohen 
Distributing  Co.,  a  beer  distributorship  in  Miami,  and  he  left  town 
after  the  organization  lost  about  $7,000  or  $8,000.  At  least  he  went 
into  debt  and  left  town,  owing  creditors  to  that  extent. 

He  went  to  California  to  join  his  brother,  Izzy  Burnstein,  who 
owned  a  string  of  horses  on  the  west  coast,  and  was  back  in  Miami 
Beach  this  past  season. 

The  residence  of  Vincent  Alo  is  located  at  1248  Monroe  Street, 
Hollywood,  Fla. 

The  Chairman.  Is  that  alias  "Jimmy  Blue  Eyes"  ? 

Mr.  Sullivan.  Alias  "Jimmy  Blue  Eyes."  Joe  DeCarlo,  who  was 
mentioned  in  this  narration  of  the  persons  directing  the  Wofford 
Hotel,  is  the  same  individual  who  has  transferred  his  operations  from 
Buffalo,  N.  Y.,  to  Youngstown,  Ohio.  He  did  this  in  the  year  1945. 
In  Youngstown  he  associated  himself  w^itli  Joseph  "Fats"  Aiello  and 
with  Charles  "Cadillac  Charlie"  Cavallero  and  Nicoline  Tamburello. 
In  Youngstown  they  organized  the  numbers  and  horse-book-making 
racket  in  conjunction  with  a  man  by  the  name  of  Ray  Lanese. 

Ray  Lanese,  according  to  the  chief  of  police  of  Youngstown,  Ohio,  is 
a  nephew  of  Joe  Massei,  and  has  been  operating  the  Italian  Village 
Restaurant  on  Twenty-third  Street,  Miami  Beach,  which  has  been 
a  place  where  a  great  many  of  these  characters  frequent. 

The  residence  of  Nick  Delmore,  of  Elizabeth,  N.  J.,  is  at  Terracina 
Avenue,  Golden  Beach,  Fla.  It  is  a  new  home,  just  recently  built,  and 
completed  in  the  last  few  months. 

In  conjunction  with  Angelo  "Gyp"  De  Carlo  (De  Carlo  is  a  well- 
known  gambling  operator)  he  has  operated  the  Chatterbox  Night 
Club  in  the  vicinity  of  New  Brunswick,  N.  J.  De  Carlo  and  William 
"Fats"  Riga  are  owners  of  the  DeRiga  Trading  Corp.  That  company 
owns  a  large  subchaser,  which  was  converted  here  in  Miami  Beach  2 
years  ago  and  which  was  refrigerated,  and  is  now  used  for  fishing. 
Associated  with  them  in  this  enterprise  is  Frank  De  Fillipo,  who 
comes  from  their  same  general  area  in  New  Jersey. 

The  residence  of  Sam  De  Carlo,  of  Buffalo,  N.  Y.,  is  located  at  6166 
Pinetree  Drive,  Miami  Beach,  Fla. 

The  operations  of  the  Wofford  Hotel  connect  with  the  operations 
of  tlie  Grand  Hotel.  John  Angersola,  of  Cleveland,  appears  as  one 
of  the  creditors  of  Thomas  J.  Cassara,  operator  of  the  Wofford 
Hotel. 

Fred  Angersola,  his  brother,  and  Beiinie  Street  signed  a  lease  on  the 
Grand  Hotel  in  the  year  1944,  which  lease  terminated  in  the  fall  of 


.ORGANIZED   CRIME   IN   INTERSTATE    COMMERCE  159 

last  year.  Thomas  Cassara  was  also  interested  in  tlie  operation  of  the 
Grand  Hotel.  In  fact,  he  was  the  owner  of  record  of  that  property 
until  the  year  1937,  at  which  time  he  sold  it.  Then,  subsequently,  he 
became  the  lessee  of  certain  night  clubs.  They  had  two  night  clubs 
connected  with  that  property.  Along  with  John  Angersola  ancl  his 
brotlier,  Fred  Angersola,  they  signed  a  lease  on  that  property  in  the 
year  1!>40,  extending  for  a  period  of  5  years.  Subsequently,  Cassara 
in  1941,  in  the  same  year  that  he  left  Miami  Beach  and  left  the  Wofford 
Hotel,  withdrew  his  connection  with  these  night-club  operations. 

The  opei-ations  were  not  too  successful,  and  for  several  years  the 
night  clubs  did  not  operate.  This  past  year  one  of  them  did  operate 
under  the  name  of  Chez  Paree,  and  is  still  in  operation  as  a  strip- 
tease night  club. 

The  lease  on  the  Grand  Hotel,  although  in  the  name  of  Thomas 
Cassara  and  Fred  Angersola,  did  not  reflect  the  true  ownership  of  all 
of  the  parties  concerned.  In  1944,  in  connection  with  the  5-year 
lease  that  was  given  to  Fred  Angersola  and  to  Bennie  Street,  there 
was  required  that  the  sum  of  $39,000  be  put  up  as  deposit  on  the  lease ; 
$15,000  of  this  money  was  put  up  by  Bennie  Street;  $16,500  was  put 
up  by  Fred  Angersola ;  and  $7,500  was  put  up  by  Joe  Massey  (Massei) , 
whose  name  does  not  appear  on  the  record  as  having  any  interest  in 
this  hotel. 

Subsequently,  Joe  Massey  took  up  his  residence  in  the  penthouse 
of  that  hotel.  In  more  recent  months  he  has  been  living  at  a  new 
home  just  constructed  at  520  Lakeview  Drive  in  Miami  Beach. 

In  the  year  1946  Dave  Glass,  a  numbers  operator  and  a  horse-book 
operator  from  Philadelphia,  joined  Bennie  Street,  likewise  a  horse- 
book  operator,  in  taking  over  the  lease  on  the  Sands  Hotel.  That 
lease  required  the  putting  up  of  a  deposit  of  $90,000  in  rent  money. 
The  lease  was  signed,  and  that  hotel  has  been  operated  by  these  two 
men  since  that  time.  Dave  Glass  himself  has  operated  a  gambling 
concession  at  that  hotel. 

The  hotel  became  a  gathering  place,  particularly,  for  a  group  of 
gamblers,  racketeers,  gangsters,  from  Philadelphia,  Pa.,  headed  up 
by  Nig  Rosen.  Nig  Rosen  heads  up  a  mob  of  about  25  or  30  men  who 
operate  in  the  Philadelphia  area.  Rosen  himself  has  headquarters  in 
New  York  City,  where  he  is  the  operator  of  the  Dearest  Miss  Dress  Co. 
His  first  lieutenant  is  Max  Weisberg,  alias  "Willie"  Weisberg.  His 
second  in  command  is  Samuel  "Cappy"  Hoffman, 

The  photographs  and  criminal  records  of  Rosen,  Weisberg,  Max 
Rothman,  Nussie  Rosen,  Max  Seigal,  Samuel  "Cappy"  Hoffman,  Mi- 
chael Matteo,  Frank  Matteo,  Anthony  Narcissi,  Harry  Provan,  Harry 
Siegel,  Irving  Greenberg,  Joseph  Herman,  Abe  Glassman,  Moe  New- 
man, and  Jack  Newman  I  have  here,  and  they  are  available  to  be 
introduced  in  the  testimony. 

The  Chairman.  All  right,  sir. 

Mr.  Sullivan.  The  operations  of  this  particular  group  centered  at 
the  Sands  Hotel.  In  the  year  1946,  when  this  lease  was  signed  and 
the  hotel  operation  was  taken  over  by  Street  and  Glass,  there  were 
very  few  of  these  men  who  showed  up.  In  the  season  of  1948-49,  a 
year  ago,  however,  the  whole  group  that  I  have  mentioned  made  this 
place  a  headquarters.  They  had  taken  over  the  gambling  operations 
and  iramblinir  concessions  at  a  number  of  hotels  in  Miami  Beach  but 


160  ORGANIZED   ORIDVIE    DST   INTERSTATE    OOQVIME'RCE 

used  the  Sands  Hotel  more  or  less  as  a  headquarters  for  their  gambling 
operations. 

Closely  associated  with  them  at  the  Sands  Hotel  was  Jack  Fried- 
lander,  of  Newark,  N.  J.,  Marco  Reginelli,  of  Camden,  N.  J.  (also 
known  as  the  Little  Guy),  who  also  appeared  to  be  a  party  in  interest 
in  their  gambling  operations.  William  Moretti,  alias  "Willie  Moore," 
of  Bergen  County,  N.  J.,  was  frequently  at  the  hotel  with  Nig  Rosen. 

In  February  1949  the  wire  service  was  shut  off  in  the  Miami  Beach 
area.  On  the  Sunday  subsequent  to  that  shut-off  there  was  a  meeting 
at  the  hotel  at  which  Marco  Reginelli,  along  with  Nig  Rosen  and  a 
very  few  others  in  this  same  mob,  attended. 

The  history  and  the  connections  of  this  gang,  I  believe,  can  be  found 
in  a  letter  from  the  Philadelphia  police  department,  dated  July  19, 
1949,  in  which  their  history  and  the  general  history  and  the  operations 
of  this  crowd  in  the  Philadelphia  area  is  set  forth  by  Mr.  Frank  Rich- 
ardson, assistant  superintendent  of  police,  commanding  the  detective 
division  of  the  Philadelphia  police  department.  Among  the  other 
general  statements  as  to  the  operations  of  this  gang,  he  mentions  the 
fact  that  they  headquarter  at  Miami  Beach  during  the  winter  season, 
where  they  maintain  gambling  operations. 

He  goes  on  to  tell  their  general  background  from  the  time  that  they 
started  their  operations  back  in  the  early  twenties,  during  the  pro- 
hibition era,  and  established  themselves  as  bootleggers  and  rumrunners 
and  the  principal  gangsters  in  the  Philadelphia  area. 

The  Chairman.  That  will  be  made  an  exhibit  to  your  testimony 
and  will  be  a  part  of  the  record. 

(The  letter  referred  to  was  marked  "Exhibit  No.  112"  and  appears 
in  the  appendix  on  p.  743.) 

Mr.  Sullivan.  Among  the  persons  connected  with  the  Sands  Hotel 
as  having  a  financial  interest  and  who  was  referred  to  by  the  employees 
of  the  hotel,  was  Alfred  Polizzi,  "Big  Al"  Polizzi,  of  Cleveland,  Ohio, 
as  distinguished  from  Albert  Polizzi,  "Chuck"  Polizzi,  of  Cleveland, 
who  was  reported  to  be  a  cousin  of  Alfred  Polizzi.  A  photograph  and 
criminal  record  of  Alfred  Polizzi  is  here,  and  I  would  like  to  introduce 
it  into  the  record. 

The  Chairman.  It  will  be  made  a  part  of  the  record. 

( Exhibit  No.  Ill  is  on  file  with  committee.) 

Mr.  Sullivan.  In  recent  years  Polizzi  has  moved  to  the  Miami  area, 
where  he  is  now  engaged  in  the  construction  business.  He  has  been  in 
association,  however,  with  "Little  Augie"  Pisano  and  the  various 
other  persons  who  frequented  the  Wofford  Hotel.  He  is  the  owner 
of  the  Wood  Duck,  a  yacht  which  is  anchored  at  the  Miami  Beach  boat 
slips.  That  boat  is  registered  in  his  name,  under  Coast  Guard  No. 
41J198.  That  same  boat  was  registered  prior  to  July  23,  1940,  to 
Arthur  B.  McBride,  of  Cleveland,  Ohio,  who  was  either  at  that  time, 
or  shortly  thereafter,  the  sole  owner  of  the  Continental  Press  wire 
service. 

On  July  23,  1940,  according  to  tlie  records  of  the  Coast  Guard, 
Arthur  McBride  transferred  title  of  this  boat  to  Fred  Angersola,  alias 
Fred  King,  the  same  man  who  was  the  lessee  of  the  Grand  Hotel,  and 
whose  brother  has  been  active  in  the  operation  of  the  Wotford  Hotel. 

On  August  15,  1941,  Fred  Angersola  transferred  this  boat  to  one 
Charles  K.  Green,  whose  identity  is  not  known  to  nie.    Five  days  later. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  161 

on  August  20,  1941,  the  boat  was  transferred  under  United  States 
Customs  No.  241036,  as  an  undocumented  vessel.  The  information  on 
that  transfer  of  title  is  not  known,  but  the  next  notation  in  the  Coast 
Guard  files  reflects  that  this  boat  was  sold  by  Amy  King,  who  is  the 
wife  of  John  King,  to  Alfred  Polizzi  on  June  3,  1944. 

The  association  of  John  Angersola  and  Polizzi  is  reflected  in  photo- 
stat of  deed  in  the  real-estate  records  of  Dade  County,  in  deed  book 
2843,  page  494,  which  reflects  the  transfer  of  certain  lots  in  the  Riviera 
section  of  Coral  Gables,  jointly  held  by  John  Angersola  and  his  wife, 
Amy  Angersola,  and  Alfred  Polizzi  and  his  wife,  Philomena  Polizzi. 

The  Chairman.  That  will  be  made  as  an  exhibit  to  your  testimony, 

(The  deed  referred  to  was  marked  "Exhibit  No.  113"  and  appears 
in  the  appendix  on  p.  746.) 

Mr.  Sullivan.  In  addition,  Polizzi  has  owned  considerable  other 
property  in  the  Coral  Gables  area.  On  July  29,  1946,  M.  F.  Pafford 
and  his  wife,  Mildred  C.  Pafford,  and  George  H.  Newsome  and  his 
wife,  Mary  J.  Newsome,  and  Harry  W.  Shank  and  his  wife,  Goldie  F. 
Shank,  transferred  title  to  the  entire  subdivision,  known  as  University 
Estates  of  Coral  Gables,  jointly  to  Arthur  B.  "Mickey"  McBride  and 
Alfred  Polizzi.    A  photostatic  copy  of  this  deed  is  offered. 

The  Chairman.  It  will  be  made  a  part  of  the  record  and  an  ex- 
hibit to  your  testimony. 

(The  deed  referred  to  was  marked  "Exhibit  No.  114"  and  appears 
in  the  appendix  on  p.  748.) 

Mr.  Sullivan.  A  photograph  of  the  subdivision  which  is  located 
near  the  Ponce  de  Leon  High  School  in  Coral  Gables  is  offered. 

The  Chairman.  It  will  be  received. 

(The  photograph  referred  to  was  marked  "Exhibit  No.  115"  and 
is  on  file  with  the  committee.) 

Mr.  Sullivan.  In  the  year  1939  a  major  investigation  of  the  num- 
bers racket  was  conducted  by  the  Cleveland  police  department.  As  a 
result  of  that  investigation  19  persons  were  indicted.  Among  the 
persons  indicted  was  a  man  by  the  name  of  Scerria,  who  fled  to  Mexico. 
John  Angersola  was  also  indicted,  and  one  of  the  brothers,  either 
George  or  Fred  Angersola. 

Six  of  the  indicated  men  used  the  "Wood  Duck  in  fleeing  the  juris- 
diction of  the  court  in  Cleveland  and  in  going  to  the  Great  Lakes  and 
passing  down  through  the  inland  waterway  to  the  Miami  area.  In 
1941  the  case  was  brought  to  trial,  and  the  brothers  were  acquitted. 
The  investigation  had  to  do  with  the  investigation  of  extortion  in 
connection  with  Negro  numbers. 

It  does  not  show  on  these  charts  but  there  has  been  a  very  close 
connection  between  the  persons  who  have  frequented  as  clients  or 
patrons  or  customers  of  the  Wofford  Hotel  and  the  Grand  Hotel.  As 
a  matter  of  fact,  the  Grand  Hotel,  located  on  Twenty-third  Street, 
is  only  about  two  blocks  away  from  the  Wofford  Hotel,  and  the  same 
persons  who  either  were  patrons  of,  or  frequented,  the  Wofford  Hotel 
also  frequented  the  Grand  Hotel,  and  that  area  around  the  Grand 
Hotel  became  nationally  known  as  a  meeting  place  probably  for  more 
nationally  known  racketeers  and  gangsters  than  any  one  local  area  in 
the  United  States. 

The  investigations  that  we  have  conducted,  and  which  cannot  pos- 
sibly be  gone  into  fully  here,  disclose  a  tremendous  amount  of  property 


162  ORGANIZED    CRIME    IN    INTE'R'STATE    COMMERCE 

that  has  been  accumulated  by  racketeers  from  all  parts  of  the  country, 
particularly  those  east  of  the  Mississippi  River.  The  money  that  is 
poured  into  legitimate  busineses,  in  hotel  investments,  and  so  forth, 
is  most  difficult  to  trace. 

The  Chairman.  Mr.  Sullivan,  the  matter  of  money  placed  in  legiti- 
mate businesses  by  these  people  is  one  of  the  primary  parts  of  the 
inquiry  of  this  committee.  I  know  that  you  have  already  furnished 
the  committee  with  very  substantial  infoniiation.  I  will  ask 
that  you  document  all  that  you  have,  and  that  will  be  made  a  part  of 
your  testimony  and  part  of  the  record  of  this  committee.  We  fully 
realize  that  going  into  the  details  of  each  one  of  these  investments  at 
this  hearing  would  consume  too  much  time,  and  so  we  will  handle  it 
in  that  fashion,  but  your  documentation  will  be  made  public  when 
it  is  completed. 

Mr.  Sullivan.  For  instance,  in  the  case  of  Joe  Massei,  of  Detroit, 
he  has  spent  the  great  bulk  of  his  time  in  Miami  Beach  for  the  past 
10  years.  His  interest  is  disclosed  in  the  lease  on  the  Grand  Hotel. 
His  ownership  of  his  home  at  520  Lakeview  Drive,  a  tremendous  home, 
discloses  his  interest.  He  is  a  one-half  owner  of  the  Miami  Provision 
Co.,  which  is  one  of  the  exclusive  provision  companies  located  in 
Miami,  and  of  which  there  is  a  photograph  here. 

The  Chairman,  All  of  these  will  be  made  exhibits  to  your  testi- 
mony and  a  part  of  the  record. 

(Exhibit  No.  Ill,  on  file  with  committee.) 

Mr.  SiTLLivAN.  He  is  the  owner  of  the  yacht  Verjo  II,  which  is  stored 
at  the  Miami  Beach  boat  slips. 

The  Chairman.  Who  is  this  you  are  referring  to  ? 

Mr.  Sullivan.  Joe  Massei. 

The  Chairman  (indicating  document).  And  this  is  his  criminal 
record  ? 

Mr.  Sullivan.  That  is  his  criminal  record,  and  there  is  the  photo- 
graph of  the  Italian  Village  Restaurant,  located  on  Twenty-third 
Street,  which  is  operated  by  his  nephew,  Ray  Lanese,  who  was  con- 
nected with  eloe  De  Carlo  in  the  operation  of  the  numbers  and  book- 
making  in  Youngstown  up  to  the  year  1948. 

William  G.  Bischoff,  alias  "Lefty"  Clark,  who  is  nationally  known 
as  an  outstanding  crap  dealer  and  operator  of  crap  games,  and  who 
is  interested  with  Massei  to  the  extent  of  40  percent  of  the  net  income 
from  the  Club  Green  Acres,  makes  Miami  Beach  his  home.  He  resides 
at  4383  North  Meridian  Avenue,  Miami  Beach. 

The  connection  of  Massei  with  the  rackets  in  Dade  County  is  not 
known  other  than  through  his  backing  of  the  operations  of  "Lefty" 
Clark,  However,  our  investigations  have  reflected  that  Joe  Massei 
controls  large-scale  numbers  operations  and  horseracing  books  in  the 
Detroit  area.  In  that  town  his  chief  lieutenant  is  Pete  Licavoli, 
Detroit  ]:)olice  department  No.  30787.  There  is  his  photograph  and 
criminal  record. 

Another  of  his  lieutenants  is  Joe  Bommarito,  alias  "Scar  Face," 
Detroit  police  department  No.  37496.  Bommarito  is  the  owner  of  an 
apartment  at  6795  Abbott  Avenue,  Miami  Beach. 

Tlie  Chairman,  It  will  be  made  a  part  of  the  record, 

( Exhibit  No,  111,  on  file  with  conmvittee.) 

Mr.  Sullivan.  Also  associated  with  Massei  in  horsebook  and  num- 
bers o])erations  in  the  Detroit  area  is  Larry  ISIcHugh,  Detroit  police 


ORGANIZED    CRIME   IN    INTERSTATE    COMMERCE  163 

department  No.  J-21944,  Herman  Bernstein,  Detroit  police  depart- 
ment No.  30946,  and  Phillip  Lieberman,  coowner  of  the  Century  Bar 
;iiid  Kestaurant  Equipment  Co.,  located  at  2144  Bagley  xVvenue  in 
Detroit. 

In  the  year  1947,  Tony  Accardo,  of  Chicago,  leased  the  home  of 
James  Passanante  at  9199  Collins  Avenue  in  Miami  Beach.  Passanante 
is  a  coowner  with  Gerhardt  Wobernian  and  Steve  Brancaleone  of  the 
Master  Music  and  Gay  Coin  Co.,  located  at  4866  Woodward  Avenue  in 
Detroit.  These  men,  w^ith  Steve  Robetaille,  were  connected  with  the 
Master  Music  Co.  and  racehorse  handbooks  and  numbers  operations 
in  the  Detroit  area. 

Massei  is  also  associated  with  them  in  those  operations.  Others 
connected  with  Massei's  operations  in  Detroit  are  Louis  Eicciardi, 
alias  "Louis  the  Wop,"  Detroit  police  department  No.  8950,  Joseph 
Burnstein,  Detroit  police  department  No.  14498,  Samuel  Lipkin,  Fred 
J.  Drain,  Charles  Cobbler,  FBI  No.  1144812,  and  Nicholas  Tamburello, 
FBI  No.  9457071. 

Accardo's  brother,  Martin  Accardo,  Chicago  police  department  No. 
C-33656,  resides  at  1217  Granada  Avenue,  Coral  Gables,  which  home 
he  owns.  Tony  Accardo  is  also  the  owner  of  a  yacht  called  the  Glcurijo. 
This  boat  is  stored  at  the  Miami  Beach  boat  slips  and  shows  painted 
on  it  Clarijo^  River  Forest,  111. 

Three  years  ago  arrangement  for  the  rental  of  this  boat  slip  were 
made  by  Joe  Massei,  who  at  that  time  stated  that  he  was  making  these 
arrangements  for  his  partner  from  Chicago,  111.,  Tony  Accardo.  Sub- 
sequently, this  boat  has  been  used  by  Harry  Russell,  of  Chicago,  and 
by  others  for  fishing  parties,  and  apparently  for  pleasure  purposes. 
I  believe  the  testimony  W'ill  hereafter  show  a  connection  between  this 
boat  and  Harry  Russell's  residence  and  also  with  the  residence  of 
George  Bowers,  one  of  the  operators  of  the  Sunny  Isles  Casino  at 
Sunny  Isles,  Fla. 

The  photograph  and  criminal  record  of  Louis  Ricciardi  reflects  a 
large  number  of  arrests  for  drug  violations,  at  least  four  charges  of 
murder  and  a  number  for  armed  robbery  and  others.  A  photograph 
of  his  residence,  9166  Harding  Avenue,  at  Surf  side,  I  also  give  you. 

I  believe  it  might  clarify  my  testimony  if  I  make  a  statement  to 
this  effect:  The  fact  that  the  chart  shows  a  definite  connection  be- 
tween certain  hotel  operations  and  between  certain  groups  does  not 
mean  that  the  associations  or  possible  connections  of  these  people 
can  be  dovetailed  or  tied  up  and  put  info  a  block.  My  investigations, 
for  instance,  have  shown,  as  reflected  by  my  testimony,  that  there  is  a 
community  of  interest  between  these  five  groups  and  an  overlapping 
of  the  operations,  both  in  gambling  and  legitimate  businesses,  which  is 
most  difficult  to  trace  out. 

The  mere  fact  of  the  geographical  origination  of  a  particular  man 
does  not  mean  that  he  must  be  tied  up  today  with  the  persons  located 
in  the  town  he  came  from.  We  found  that  particularly  true  in  the 
Miami  area  where  we  have  a  combination  of  people  connected  in  legiti- 
mate businesses  and  who  have  rackets  elsewhere  and  here,  who  come 
from  St.  Paul,  Minneapolis,  Chicago,  Detroit,  Cleveland,  Youngs- 
town,  Akron.  Buffalo,  Boston,  Providence,  R.  I.,  New  York,  Philadel- 
phia, Wasliington,  D.  C,  and  practically  all  of  the  large  towns  located 
east  of  the  Mississippi  River.  And  those  connections  show  up  in, 
different  operations  at  different  times  with  different  individuals. 


164  lORG'ANIZED    OKIME'  IN   ESPTE'R'STAT'E    COMMERCE 

For  instance,  Fred  Angersola  is  shown  as  the  operator  of  the  Grand 
Hotel,  the  lessee  of  the  Grand  Hotel,  but  his  brother,  John  Angersola, 
is  shown  as  one  of  the  operators  of  the  Wofford  Hotel,  but  the  Wofford 
Hotel,  in  turn,  is  a  mixture  of  Cleveland  people  and  New  York  City- 
people,  and  the  persons  who  took  part  in  gambling  games  in  the  Wof- 
ford come  from  New  York,  Detroit,  Philadelphia,  Providence,  New 
Jersey,  Cleveland,  and  other  towns,  and  that  seems  to  go  through  all 
our  investigations ;  that  although  there  is  a  common  enterprise,  which 
might  be  gambling,  nevertheless  they  have  individual  interests  that 
the  people  might  have,  regardless  of  geographical  location. 

In  the  case  of  the  gambling  in  Broward  County  I  think  it  can  be 
generally  stated  that  that  major  gambling  has  been  controlled  by  a 
group  of  New  York  racketeers,  to  the  exclusion  of  other  racketeers 
from  Chicago,  Detroit,  and  what  not. 

In  the  Miami  area  gambling  has  been  controlled  in  great  measure 
by  local  operators  until  the  last  year  or  two.  The  legitimate  business 
interests,  however,  overlap  from  one  to  another. 

In  the  Martinique  Hotel  in  Miami  Beach,  Isadore  Blmnenfield,  alias 
"Kid  Cann" — he  is  not  shown  on  the  chart — has  been  stated  from  a 
number  of  sources  as  being  a  large  owner  of  that  property.  That 
real  estate  on  which  the  Martinique  Hotel  is  located  is  owned  by  a 
corporation.  The  lots  south  of  that  hotel  are  owned  by  the  same  cor- 
poration. One  of  the  principal  officers  in  that  corporation  is  Ed 
Berman  of  Minneapolis,  Minn.  Ed  Berman  is  one  of  three  brothers. 
Edward  Berman,  FBI  No.  713989,  who  was  sentenced  in  the  United 
States  district  court  in  Oklahoma,  to  5  years  in  the  United  States 
penitentiary  in  connection  with  a  Federal  charge  of  conspiracy  in 
connection  with  kidnaping.     He  was  sentenced  on  October  7,  1933. 

Dave  Berman,  FBI  52755,  has  a  criminal  record  which  shows  a 
number  of  arrests  and  at  least  one  case  of  conviction  at  the  Sing  Sing 
Prison  in  November,  November  23,  1927. 

Charles  Erving  Berman,  FBI  No.  111205,  is  also  a  brother  of  Ed 
and  Dave  Berman.  Charles  Berman  goes  by  the  alias  of  Chick  Ber- 
man, and  he  now  has  gambling  concessions  in  Miami  Beach  and  was  a 
very  frequent  visitor  to  the  Club  Boheme  and  the  Club  Green  Acres 
in  Broward  County  this  past  season. 

The  Martinique  Hotel  opened  up  in  the  year  1946,  immediately 
after  the  war,  as  a  new  hotel.  The  gambling  concession  at  that  hotel 
was  taken  over  by  a  New  Yorker,  a  man  by  the  name  of  Julius  Cramer, 
alias  Julius  Steel,  alias  Julius  Berman,  and  is  commonly  known  in 
Miami  Beach  by  the  name  of  Beeman,  Jules  Beeman.  His  criminal 
record  goes  back  to  the  year  1924  and  shows  a  large  number  of  arrests 
on  such  charges  as  grand  larceny,  felonious  assault,  and  drug 
violations. 

Subsequent  to  his  taking  over  this  gambling  concession  he  was 
brought  before  the  Federal  court  as  a  material  witness  in  a  special 
inquiry  being  made  of  the  narcotics  operations  in  this  area.  Jules 
Beeman  has  in  the  last  year  or  so  taken  over  as  a  partner  in  the  opera- 
tions of  a  gambling  syndicate  in  Miami  Beach  known  as  the  Little 
Syndicate.  The  Little  Syndicate  has  been  control  led  by  two  gamblers, 
Sammy  Clark  and  Harris  Leveson,  and  in  the  last  year  and  a  half 
Jules  B?eman  has  become  one  of  the  principal  owners  in  that  gambling 
operation. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  165 

The  criminal  records  and  photographs  of  the  people  I  mentioned 
and  the  photographs  of  the  hotel  are  there. 

In  searching  the  real-estate  records  of  Dade  County  we  found  that 
Isadore  Blumenfeld,  along  with  Edward  Berman,  and  Blumenfeld's 
brothers,  Harry  and  Yiddy  Bloom,  were  associated  with  the  purchase 
of  a  tremendous  amount  of  property  in  the  Greater  Miami  area. 
Along  with  them  was  a  man  by  the  name  of  Abe  Brownstein  and  his 
wife,  Emma,  S.  I.  Bernbaum,  and  his  wife,  Birdie  Bernbaum,  and 
8.  W.  and  Leroy  Feldman — all  of  Minneapolis,  Minn. 

As  the  result  of  a  search  of  the  real-estate  records  we  found  that 
Blumenfeld,  Berman,  and  these  others  either  jointly  or  individually, 
or  partially  between  them,  owned  the  LaBelle  Apartments,  at  344 
Euclid  Avenue,  Miami  Beach,  the  Hollingsworth  Apartment,  at  1641 
Pennsylvania  Avenue,  Miami  Beach,  the  Tamiami  Hotel j  at  North- 
west Second  Avenue  and  Flagler  Street,  the  Hotel  Martinique,  two 
undeveloped  lots  on  Byron  Avenue  between  Eighty-fourth  and 
Eighty-fifth  Streets,  Miami  Beach,  a  hotel  located  south  of  the  Mar- 
tinique Hotel,  three  ocean-front  lots  south  of  that  hotel,  a  parking  lot 
at  225  West  Flagler  Street,  Miami,  Fla.,  five  lots  in  the  Normandy 
Golf  Course  subdivision,  two  lots  in  the  intersection  of  Michigan  Ave- 
nue and  Indian  Creek  Drive,  Miami  Beach,  Fla. 

The  ownership  of  the  property  is  not  restricted  to  the  ownership  of 
outsiders.  Our  investigation  disclosed,  and  investigations  previously 
made  by  Melvin  Richard,  presently  city  councilman  at  Miami  Beach, 
disclosed  that  the  S  &  G  Syndicate  members  had  purchased  a  tre- 
mendous amount  of  ocean-front  property,  running  from  the  Firestone 
estate,  from  Forty-third  Street,  Miami  Beach,  up  to  and  beyond 
Sixty-second  Street,  Miami  Beach,  and  this  is  probably  the  most  ex- 
pensive real  estate  in  the  nonbusiness  area,  nonbusiness  real  estate  in 
the  Miami  area. 

Among  the  property  owners  was  Harold  Salvey,  Charles  Friedman, 
Sam  Cohen,  Jules  Levitt  and  his  sister,  Virginia  Levitt,  Sam  Fried- 
man, brother  of  Charles  Friedman — all  of  these  of  the  S  &  G  Syndi- 
cate— Samuel  T.  Haas,  a  retired  criminal  lawyer  from  Cleveland,  Ohio, 
and  Thomas  J.  McGinty,  operator  of  the  Mounds  Club  at  Cleveland, 
Ohio. 

Our  investigation  further  disclosed  the  ownership  of  a  tremendous 
amount  of  ocean-front  property  south  of  Palm  Beach,  at  Lake  Worth, 
Fla.  We  found  that  the  property  on  which  the  Palm  Beach  Ambas- 
sador Hotel  is  located,  at  Lake  Worth,  was  owned  by  Samuel  T.  Haas. 
That  building  was  built  by  the  Burnstein  Bros.,  a  construction  com- 
pany of  Cleveland,  Ohio. 

One  of  the  officers  in  that  construction  company  was  Allard  F.  Roen, 
and  Roen  was  the  recipient  of  telephone  calls  that  originated  on  the 
west  coast  with  a  large  gambling  operator  who  I  believe  was  Mickey 
Cohen. 

Edward  P.  Strong,  who  was  formerly  owner  of  several  race  tracks 
in  Ohio,  and  who  was  a  major  stockholder  in  the  Detroit  race  track, 
and  who  is  associated  with  Arthur  B.  McBride,  of  Cleveland,  in  cer- 
tain business  enterprises,  also  was  disclosed  as  being  the  owner  of  a 
large  amount  of  property  in  the  same  area  in  which  Sam  Haas  owned 
property  at  Palm  Beach. 

On  May  23,  1950,  two  suits  were  filed  in  the  circuit  court  in  Dade 
County,  asking  for  the  rezoning  of  the  property  located  north  of  the 


166  (ORGANIZED    ORIIME    IN    INTE'RSTATE    COMMERCE 

Firestone  estate,  of  which  a  number  of  lots  are  owned  by  the  S  &  G 
Syndicate.  These  suits  were  brought,  one  by  Harold  Salvey,  a  mem- 
ber of  the  S  &  G  Syndicate,  and  the  other  suit  by  Thomas  G.  McGinty, 
and  the  purpose  of  the  suits  was  to  require  that  the  property  be  opened 
up  from  residential  to  hotel  and  apartment  zoning.  By  so  doing  the 
owners  of  that  property  would  increase  their  profits  three  to  four 
hundred  percent,  making  it  possible  for  the  owners  to  realize  a  tre- 
mendous profit  in  case  that  proj^erty  could  be  rezoned. 

The  other  legitimate  interest  of  the  racket  element  in  this  area  is 
reflected  in  the  ownership  of  the  Lyric.  It  is  a  wired-music  organiza- 
tion of  which  the  majority  of  the  stock  is  controlled  by  one  Bennie 
Kaye,  who  is  carried  on  a  previous  chart  as  the  operator  of  gambling 
at  the  Club  Collins  on  Collins  Avenue,  Miami  Beach. 

On  February  27,  1950,  we  conducted  an  investigation  to  investigate 
and  check  on  the  activities  of  two  men  who  were  reported  to  be  in- 
stalling illegally  and  improperly  telephones  in  various  gambling  loca- 
tions in  the  Miami  Beach  area.  As  a  result  of  our  investigation  we 
found  two  men  driving  in  an  automobile  who  pulled  up  in  the  rear  of 
Lincoln  Road  in  Miami  Beach.  These  two  men  contacted  the  driver 
of  a  telephone  company  truck  and  the  truck  was  opened  and  the  two 
occupants  of  this  car,  Melvin  Zeigler  and  Lawrence  A.  Bridis,  driving 
a  1941  Buick  club  coupe  automobile,  proceeded  to  take  telephone 
equipment  from  the  truck  for  a  period  of  15  or  20  minutes;  a  tre- 
mendous quantity  of  equipment. 

The  original  information  of  our  inquiry  was  to  the  effect  that  these 
men  were  installing  telephones  and  taking  telephones  out  of  the  bookie 
establishments  in  Miami  Beach.  During  the  course  of  the  surveillance 
the  investigators  saw  these  men  go  into  various  hotels  to  the  loca- 
tions of  the  cabanas  with  telephone  instruments,  wires,  and  various 
other  types  of  telephone  equipment  and  return  with  other  telephone 
instruments  of  a  different  nature,  which  apparently  they  had 
replaced. 

Since  that  time  we  have  received  information  and  are  now  investi- 
gating an  agreement  for  the  purchase  of  certain  sound  equipment 
which  is  used  for  the  purpose  of  taking  and  transmitting  information 
by  wire  illegally  or  improperly.  This  consists  of  a  set  whereby  it 
can  be  tied  into  either  a  telephone  wire  or  a  power  line,  and  com- 
munications can  be  sent  over  those  lines  by  carrier  current  and  the 
information  picked  up  within  an  area  of  12  to  15  miles. 

The  CiiAiKMAN.  Mr.  Sullivan,  when  you  reach  a  place  where  you 
can  pause,  I  think  you  had  better  do  so.  How  much  longer  do  you 
think  your  testimony  will  take? 

Mr.  SuLLiVxVN.  I  don't  think  any  longer  than  15  minutes. 

The  Chairman.  I  want  you  to  make  your  full  statement  but  we 
would  like  to  notify  some  witnesses,  if  they  will  be  needed  this  after- 
noon, or  as  to  whether  they  will  be  needed. 

A  number  of  witnesses  are  here  under  subpena,  and  all  witnesses 
who  have  been  subpenaed  and  are  requestecl  to  appear  before  the 
committee  must  remain  in  attendance  at  the  hearings  unless  specifically 
excused.  If  any  of  you  cannot  conveniently  be  here  this  afternoon 
you  might  chock  with  Mr,  Robinson  or  Mr.  Halley  of  the  connnittee 
staff  and  see  wliether  it  was  the  intention  to  have  you  this  afternoon 
or  whether  you  should  come  back  tomorrow;  but  do  not  leave  unless 
you  secure  permission  to  do  so. 


ORGANIZED    CRIME,   IN    INTERSTATE    COMMERCE  167 

The  committee  will  stand  in  recess  until  2  o'clock,  at  which  time 
we  will  resume  our  proceedings  promptly. 

AFTERNOON  SESSION 

The  Chairman.  The  connnittee  will  come  to  order.  Mr.  Sullivan, 
will  you  come  back  to  the  stand? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  All  right,  Mr.  Sullivan.  Will  you  proceed  with 
your  testimony? 

Mr.  Sullivan.  I  have  jnst  a  couple  of  items  here  that  I  would  like 
to  clear  up.  I  had  misplaced  a  photograph  of  Sam  "Gameboy" 
Miller,  and  the  other  is  Isadore  Blumenfield,  alias  Kid  Cann,  and  also 
a  photograph  of  an  apartment  house  owned  by  Herbert  Manheim  at 
998  Bay  Drive,  Miami  Beach. 

The  Chairman.  They  will  be  attached  with  their  criminal  records. 

Mr.  Sullivan.  They  are  already  in  evidence. 

(Exhibit  No.  Ill  on  file  ^xith  committee.) 

Mr.  Sullivan.  In  connection  with  the  ocean-front  lots  that  I  have 
testified  about  this  morning,  those  lots  were  valued  a  year  ago  at  $800 
to  $1,000  per  front-foot.  With  the  present  zoning  changes  the  lots 
are  approximately  4  percent  less  at  the  present  price  of  $3,750  and 
$4,000  per  front-foot. 

I  might  just  conclude  by  briefly  stating  that  the  identities  of  the 
principal  gambling  operations  in  Dade  County.  The  gambling  in 
Miami  Beach  is  more  or  less  limited  to  horse  bookmaking  and  the  major 
operations  are  controlled  by  the  S.  &  G.  Syndicate,  of  whom  the  mem- 
bers are  Jules  Levitt,  Sam  Cohen,  Charles  Friedman,  Harold  Salvey, 
Eddie  Rosenbaum,  and  Harry  V.  Russell,  the  latter  being  a  member 
only  for  about  the  past  15  months,  and  he  formerly  was  connected  with 
the  Capone  Syndicate  as  a  partner  in  the  operations  of  gambling  of 
Charles  Gioe  and  Ralph  Pierce  at  the  Silver  Bar  at  400  South  S^ate 
Street. 

The  Miami  Syndicate — an  old  gambling  syndicate — has  more  or  less 
headquartered  their  operations  at  Club  86.  This  club  has  not  been 
open  for  gambling  for  the  last  2  years.  However,  some  of  the 
members  have  their  individual  horse-bookmaking  operations  and  the 
identity  of  the  members  of  Charles  Thomas,  Merle  Yarbrough,  Jack 
Friedlander,  Cliff  Spikes,  and  Marty  Richman. 

The  Sunny  Isles  Casino  is  located  at  Sunny  Isles.  It  is  run  by  Ike 
Miller  and  three  members  of  the  S.  &  G.  Syndicate  from  Miami  Beach, 
Charles  Friedman,  Jules  Levitt,  and  Harold  Salvey.  This  year 
George  Bowers  was  also  an  owner  and  I  think  one  or  more  of  the 
other  members  in  previous  years  dropped  out.  The  Island  Club, 
which  is  also  located  at  Sunny  Isles  Casino,  and  is  operated  by  Herbert 
Manheim,  Sam  Cohen,  Sam  "Gameboy"  Miller,  of  Cleveland,  and 
Jack  Friedlander, 

I  think  that  summarizes  the  general  gambling  operations — the  major 
operations. 

Mr,  Halley,  Have  you  to  your  satisfaction  described  the  operation 
of  the  S.  &  G.  Syndicate?  ^ 

Mr,  Sullivan,  I  haven't  described  them.  I  might  be  able  to  briefly 
summarize  them. 

Mr.  Halley.  Would  you  do  that  in  summary  form  ? 

68958— 50— pt.  1 12 


168  ORGANIZED   C'RlIME    IN   INTERSTATE    COMMERCE 

Mr.  Sullivan.  The  S.  &  G.  Syndicate  is  primarily  a  bookmaking 
syndicate.  It  has  several  headquarters  and  individual  operators  who 
come  to  this  area  ordinarily  negotiate  with  themselves  with  the  owners 
of  hotels  and  arrange  for  a  price  for  the  gambling  concession  at  the 
hotels.  Then  arrangements  are  made  with  the  syndicate  for  cutting 
up  the  cost  of  the  concession.  The  gambling  operator  pays  the  hotel 
himself  personally  whether  it  is  $3,000  or  $10,000.  The  syndicate  then 
places  its  own  value  on  the  worth  of  the  gambling  concession. 

If  the  operator  has  paid  $10,000  to  the  hotelman,  the  syndicate  might 
think  it  is  only  worth  $7,000  and  they  will  only  assume  one  half  of 
what  they  consider  to  be  a  good  price. 

In  other  words,  they  would  assume  $3,500,  or  one-half  of  $7,000,  or 
whatever  figure  it  is  worth.  Then,  that  money  or  obligation  of  the 
syndicate  is  not  put  up  in  cash.  That  money  is  paid  off  only  out  of 
profits.  The  operator  then  goes  into  business  and  arrangements 
are  made  with  the  syndicate  to  book  bets  through  the  syndicate,  and 
the  wire  service  is  arranged  for  and  the  purchase  of  scratch  sheets  and 
other  things. 

A  telephone  ordinarily  is  run  into  the  cabanas  and  bets  are  taken 
both  in  the  hotels  and  on  the  beach. 

Mr.  Halley.  Who  are  the  members  of  the  S.  &  G.  Syndicate? 

Mr.  Sullivan.  I  have  just  given  them  a  few  minutes  ago. 

Mr.  Halley.  Did  you  mention  Russell  as  a  member? 

Mr.  Sullivan.  Yes,  I  did. 

Mr.  Halley.  When  did  he  become  a  member  ? 

Mr.  Sullivan.  In  the  spring  of  last  year — the  spring  of  1949. 

Mr.  Halley.  What  were  the  circumstances  leading  up  to  Russell's 
becoming  a  member? 

Mr.  Sullivan.  Early  in  February,  at  the  top  of  the  season — the  sea- 
son runs  from  about  the  15th  of  January  to  about  the  5th  of  March; 
or  even  later  than  the  15th  of  January ;  around  the  1st  of  February — 
shortly  after  the  1st  of  February  1949  the  wire  service  was  suddenly 
shut  off  in  Miami  Beach,  and  then,  on  subsequent  days,  it  was  shut  off 
in  the  rest  of  the  south  Florida  area,  in  Broward  County,  Monroe 
County,  and  Dade  County.  With  that  service  being  shut  off,  it  prac- 
tically put  organized  bookmaking  out  of  business.  It  remained  off 
for  a  period  of  10  or  12  days  and  when  it  was  renewed,  Harry  Russell 
was  brought  in  as  a  partner  in  the  S.  &  G.  Syndicate. 

Mr.  Halley.  He  had  not  appeared  as  a  partner  before  then  ? 

Mr.  Sullivan.  Not  at  all. 

Mr.  Halley.  Have  you  described  the  operation  of  the  syndicate  in 
Miami  to  your  satisfaction? 

Mr.  Sullivan.  I  think  so.  The  major  operations,  as  I  say,  were 
in  Club  86.  Some  of  the  operators  had  been  connected  with  the  opera- 
tions of  the  Tepee,  a  night  club  and  gambling  place  located  on  South- 
west Eighth  Street,  which  is  run  off  and  on  during  the  season  generally 
for  a  number  of  years. 

The  individual  members  of  that  syndicate  have  participated  in  other 
forms  of  gambling  such  as  Bolita,  numbers,  as  individuals.  This  syn- 
dicate also  goes  under  the  name  of  the  ABC  Co,  as  the  legal  entity. 

Mr.  Halley.  What  gambling  operations  funnel  out  of  Club  86? 

Mr.  Sullivan.  Normal  crap,  roulette,  chuck-a-luck,  bird  cage;  it  is 
a  large  gambling  place. 


ORGANIZED   CRIME   IN   INTERSTATE   COMMERCE  169 

Mr.  Hallet.  Can  you  state  where  S.  &  G.  gets  its  service  today  ? 

Mr.  SuLLivA>r.  No ;  I  can't. 

Mr.  Halley.  Do  yon  know  whether  it  does  get  wire  service  or 
whether  it  got  wire  service  during  the  past  winter? 

Mr.  Sullivan.  I  do. 

Mr.  Halley.  But  you  do  not  know  where  ? 

Mr.  Sullivan.  No  ;  I  don't. 

Mr.  Halley.  I  have  no  further  questions. 

The  Chairman.  Senator  Hunt  ? 

Senator  Hunt.  This  morning,  Mr.  Sullivan,  in  your  testimony  you 
told  us  of  watching  the  transfer  of  a  very  good  deal  of  telephone 
equipment  from  a  telephone  truck  to  a  passenger  car.  Was  that  trans- 
action reported  or  was  anything  done  about  it  ?     Was  it  looked  into  ? 

Mr.  Sullivan.  Yes ;  we  reported  it.  The  two  men  who  investigated 
it  reported  it  to  the  office  of  the  county  solicitor  for  a  determination  of 
whether  there  was  evidence  enough  for  prosecution  on  the  question  of 
whether  they  could  identify  the  material  that  might  be  found  in  the 
car  of  these  two  men  as  being  telephone  company  property,  and  it  was 
taken  under  advisement.  He  considered  making  some  further  investi- 
gation to  either  search  the  car  or  bring  the  men  in  for  questioning  in 
an  effort  to  locate  the  property,  but  nothing  more  was  done  about  it. 

Senator  Hunt.  You  don't  know  whether  the  telephone  company 
itself  was  apprised  of  this  situation? 

Mr.  Sullivan.  Yes ;  they  were  apprised  of  it.  In  fact,  I  talked  to 
the  officials  of  the  telephone  company,  and  it  was  agreed  that  the  mat- 
ter would  be  taken  up  with  the  county  solicitor's  office. 

Senator  Hunt.  Nothing  came  of  it  ? 

Mr.  Sullivan.  Nothing  came  of  it. 

Senator  Hunt.  You  are  probably  acquainted  with  the  situation  here 
better  than  any  other  individual.  Would  you  care  to  make  any  kind 
of  an  estimate  of  the  gambling  take  in  this  area  in  any  one  season  ? 

Mr.  Sullivan.  That  would  be  difficult.  I  would  say  that  the  gross 
take  of  the  S.  &  G.  Syndicate  on  Miami  Beach  alone  runs  between 
$30,000,000  and  $40,000,000  a  year,  and  that  their  net  runs  somewhere 
between  $4,000,000  and  $8,000,000  per  year. 

Senator  Hunt.  And  that  doesn't  include  the  gambling  take? 

Mr.  Sullivan.  And  that  doesn't  include  the  gambling  houses  and 
other  gambling  operations. 

Senator  Hunt.  Would  you  care  to  make  any  estimate — just  a 
guess — as  to  what  you  think  the  total  value  of  the  gambling  business 
runs  to  here  in  a  season,  just  to  give  us  an  idea  ? 

Mr.  Sullivan.  I  would  say  that  probably  the  rest  of  the  gambling 
in  the  county  doesn't  amount  to  any  more  than  what  the  S.  &  G.  makes ; 
probably  rims  somewhere  around  $10,000,000 — $8,000,000  to  $10,- 
000,000. 

Senator  Hunt.  Let's  not  limit  it  just  to  one  county;  to  this  area — 
the  Miami  area.     What  would  you  estimate  the  take  to  be  ? 

Mr.  Sullivan.  Senator,  I  really  just  couldn't  do  it.  I  am  not  fa- 
miliar enough  with  all  their  gambling  operations  in  Broward  County 
to  come  to  a  conclusion.     It  runs  up  to  quite  a  large  sum  of  money. 

Senator  Hunt.  Well,  let  me  just  suggest  that  it  may  be  $25,000,000. 
Now,  would  you  care  to,  or  could  you  give  us,  any  idea  of  what  part  of 
that  $25,000,000  goes  out  of  the  State,  goes  into  the  cities  where  the 
heads  of  these  gangs  are  established  ? 


170  ORGANIZED    ORIIME    IX    INTERSTATE    COMMERCE 

Mr.  Sullivan.  Well,  I  think  in  Broward  Comity  a  large  propor- 
tion of  it — a  fairly  large  proportion  of  it — will  go  north.  In  Dad'& 
county,  a  great  number  of  the  gambling  concessionaires  are  S.  &  (t. 
people  located  in  other  States  like  New  York  and  New  Jersey  wha 
come  down  here  during  the  season.  That  money  in  great  measure 
will  go  out  of  here.  At  least  their  50  percent  share  will  go  out. 
The  50  percent  share  that  the  syndicate  takes  of  course  will  stay  here, 
but  it  would  be  hard  to  estimate  what  proportion  of  that  would  leave 
the  State  and  what  part  would  stay  in. 

Senator  Hunt.  Now,  to  further  develop  the  line  of  reasoning  I 
suggested  this  morning,  do  you  think  gambling  is  an  asset  to  this 
community  ? 

Mr.  Sullivan.  No,  I  don't. 

Senator  Hunt.  Economically? 

Mr.  Sullivan.  No,  I  don't. 

Senator  Hunt.  Wliat  do  the  people  think  ? 

Mr.  Sullivan.  I  think  there  is  quite  a  large  group  of  people  that 
think  that  gambling  is  an  asset  in  that  it  is  an  inducement  to  the 
tourists. 

There  is,  I  think,  a  rather  common  and  accepted  opinion  that 
gambling  is  a  question  of  placing  a  dollar  bet  and  that  is  all,  and 
the  basis  upon  which  the  people  make  up  their  minds  seems  to  be 
that  by  doing  that,  there  is  no  harm  in  placing  a  dollar  bet,  but  the 
ramifications  of  when  it  becomes  highly  organized  and  operated  by 
syndicates  doesn't  seem  to  reach  the  average  person. 

Senator  Hunt.  Do  these  gamblers  maintain  local  bank  accounts? 

Mr.  Sullivan.  Yes ;  a  great  number  of  them  do.  I  have  no  way  of 
estimating  how  many  do  and  what  percentage  doesn't. 

Senator  Hunt.  Does  a  crap  game  bank  daily  ? 

Mr.  Sullivan.  It  depends  upon  the  game.  If  it  is  a  large  game, 
the  banking  in  great  measure  is  done  through  an  armored  truck 
service  which  acts  more  or  less  as  the  bank.  The  money  is  put  in 
the  armored  truck  and  it  is  kept  overnight  and  it  comes  back  the  next 
day,  so  the  armored  truck  actually  becomes  the  bank  or  the  place  of 
deposit  of  these  funds  during  the  gambling  season. 

Senator  Hunt.  Do  you  think  there  is  any  honest  record  made  of 
the  winnings  of  these  various  gambling  institutions  so  that  the  Gov- 
ernment may  have  a  check  for  income  tax  purposes  ? 

Mr.  Sullivan.  No,  I  don't.  It  is  too  easy  to  take  money  off 
the  top.  You  can  figure  an  operation  where  a  gambling  place  could 
lose,  and  they  probablv  do  lose,  on  an  average  of  $20,000  a  night  for 
5  nights.  That  would  mean  $100,000  that  they  are  in  tlie  hole.  But 
if  tliey  were  to  run  a  lucky  night  where  they  might  make  $75,000,  it 
would  seem  very  foolish  for  a  gambling  operator  who  is  operating 
outside  the  law  to  take  that  $75,000  and  declare  it  all  as  a  profit  when 
he  is  already  $100,000  in  tlie  hole.  There  is  nothing  to  stop  him 
from  putting  that  $25,000  in  his  pocket  and  making  an  accurate 
return  on  the  rest  of  the  money,  and  to  so  instruct  his  accountanrs 
to  make  an  accurate  check  on  the  money  or  records  that  he  turns 
over  to  the  accountant. 

Senator  Hunt.  Your  crime  commission,  like  the  Chicago  Crime 
Commission  and  the  otlier  crime  commissions  in  the  various  cities, 
without  a  question  of  doubt  lias  been  doing  tremendously  excellent 
work. 


.ORGANIZED   CRIME   IN   INTERSTATE    COMMERCE  171 

Would  you  care  to  tell  the  committee  some  specific  results  thtit  you 
thiuk  you  have  obtained  from  your  work? 

Mr/ Sullivan.  I  think  that  the  specific  results  that  we  have  had 
down  here  cannot  be  measured  in  any  suits  that  were  brought,  in  any 
l)etter  law  enforcement  except  the  law  enforcement  that  has  come  about 
throuofh  the  pressure  of  public  opinion. 

Miami  Beach  gambling,  for  instance,  last  year  closed  down  in  June 
and  remained  closed  up  until  the  first  of  this  year,  practically  tight  as 
a  drum  for  the  first  time  in  many,  many  years.  Then  it  opened  up  on 
a,  more  or  less  sneak  basis,  and  as  time  went  on  it  opened  more  and 
more  and  it  closed  down  again  around  March.  The  gambling  houses 
closed  down. 

I  believe  it  was  due  in  great  measure  to  the  pressure  we  put  on 
these  gambling  operations  around  the  middle  of  February  of  this 
year,  well  before  the  season  was  over.     That  is  the  top  of  the  season. 

We  brought  an  injunction  suit  against  one  gambling  place  after  we 
obtained  information  that  a  mob  from  Philadelphia  was  moving  in  on 
it — the  Turf  Club — and  we  got  an  injunction  against  that  place. 

The  difficulty  that  we  find  in  attemptin2;  to  enforce  the  law  is  that 
it  is  an  expensive  proposition ;  where  the  work  of  prosecution  of 
the  case  is  not  taken  care  of  by  somebody  that  is  on  a  payroll; 
where  you  have  to  hire  attorneys  to  prosecute  the  case  and  you  must 
hire  witnesses  to  testify;  to  make  investigations  and  to  appear  in 
court,  and  the  thing  is  dragged  out  over  a  long  period  of  time  so  that 
it  handicaps  us  to  the  extent  that  one  injunction  suit  will  cost  as  much 
as  $800  or  $1,000.  That  is  the  difficulty  of  trying  to  do  something 
by  individual  operations. 

In  great  measure  we  have  attempted  to  arouse  public  opinion  against 
the  evils  of  it  because  we  are  a  new  organization  on  the  detrimental 
effects  that  it  has  on  the  commnnity  not  only  because  of  the  money  be- 
ing diverted  from  legitimate  channels  but  because  of  the  fact  that  this 
Avidespread  gambling  is  an  inducement  to  these  racketeers  to  come 
down  and  invest  some  of  that  money  in  these  gambling  houses  and 
gambling  operations  and  that  money  is  very  difficult  to  trace. 

We  know  that  the  result  of  it  is  that  the  money  does  go  into  these 
gambling  operations  and  we  find  ourselves  with  a  tremendously  large 
criminal  population,  and  we  think  it  is  bad  on  the  community  b?cause 
some  of  the  money  passes  from  the  illegitimate  channels  into  the 
legitimate  trade  in  the  purchase  of  hotels  and  different  companies  and 
operations  so  that  after  they  are  here  for  a  while,  it  is  difficult  to  find 
out  who  owns  what  or  who  you  are  dealing  with. 

So,  in  great  measure,  our  operations  have  been  directed  to  ap])ealing 
to  the  people  in  arousing  an  interest  on  the  part  of  the  public  to 
demand  of  the  public  officials  that  they  enforce  the  law. 

Senator  Hunt.  One  more  question,  Mr.  Sullivan.  Greater  Miami 
here  has  a  project  that  you  have  been  working  on  for  a  great  many 
years — an  educational,  cultural,  and  trade  center — a  sort  of  continuous 
exposition  that  they  are  looking  forward  to  and  have  been  working 
on,  with  the  possible  expenditure  in  lay-out  of  grounds  and  buildings 
and  some  sort  such  as  that  of  as  much  as  $60,000,000.  It  is  to  encom- 
pass a  trade  center  and  an  educational  center  and  a  cultural  center 
for  the  Western  Hemisphere. 

Do  you  think  the  reputation  that  Miami  is  gaining  by  virtue  of 
this  gangster  headquarters  in  wintertime  being  perhaps  the  outstand- 


172  ORGANIZED   CRIME'  EST   INTEKSTATE    COMMERCE 

ing  gambling  area  of  the  States  today  will  work  to  the  disadvantage 
of  that  greater  Miami  project  that  all  Miami  is  looking  forward  to  ? 

Mr,  Sullivan.  I  certainly  do.  I  think  it  has  an  effect  upon  the 
investment  of  any  money  in  this  area,  particularly  where  it  gets  to  a 
point  where  there  is  a  possibility  of  the  racket  element  obtaining 
political  control  through  bribery  and  corruption  and  what  not  of  our 
Government,  because  legitimate  businessmen  don't  like  to  invest 
money,  as  you  know,  in  any  area  where  their  investment  is  not  secured 
by  established  law  and  order. 

Senator  Hunt.  I  think  that  is  all. 

The  Chairman.  You  spoke  of  the  Miami  Crime  Commission  em- 
ploying attorneys  to  prosecute  cases  against  these  criminals;  is  that 
correct  ? 

Mr.  Sullivan.  Injunction  suits. 

The  Chairman.  Injunctions.  How  about  the  regular  prosecuting 
attorney  here  in  Dade  County  ?  Do  they  prosecute  the  suits  against 
these  people? 

Mr.  Sullivan.  Very  rarely;  that  is,  of  any  gambling  operation  of 
any  size. 

The  Chairman.  Have  you  turned  information  over  to  them,  and 
what  happened  to  the  information  that  you  turned  over  to  them,  if 
you  have? 

Mr.  Sullivan.  Senator,  the  operations  of  these  gambling  places 
are  so  well  known  down  here  that  it  is  a  matter  of  common  knowledge. 
It  is  practically  reported  in  the  press  that  this  gambling  place  is 
running  wide  open  and  the  next  gambling  place  is  running  wide  open. 
It  is  not  a  question  of  sneak  operations.  It  is  just  common  knowl- 
edge, and  the  diti'erent  gambling  places  appeal  to  different  classes  of 
clientele.     Some  of  the  larger  places  have  a  plush  clientele. 

The  Chairman.  I  know  if  you  don't  live  here  you  can't  be  here 
but  30  minutes  and  make  any  inquii*y  when  the  season  is  on  without 
being  told  about  all  of  these  places. 

What  is  the  local  prosecuting  attorney  doing  or  what  has  he  done  to 
close  them  up  ? 

Mr.  Sullivan.  There  has  been  no  particular  action  taken  locally. 

The  Chairman.  No  particular  action.  What  special  action  or  any 
action  ? 

Mr.  Sullivan.  No  action  that  I  know  of  to  close  them  down. 

The  Chairman.  How  about  the  sheriff  ?  What  is  his  responsibility 
in  that  matter  ? 

Mr.  Sullivan.  The  sheriff  has  a  responsibility. 

The  Chairman.  Is  it  against  the  laws  of  the  State  of  Florida  to 
have  these  open  gambling  places  ? 

Mr.  Sullivan.  Yes. 

The  Chairman.  What  does  he  do  about  it  ? 

Mr.  Sullivan.  Nothing  particularly. 

The  Chairman.  Why?    Don't  you  give  him  a  lot  of  information? 

Mr.  Sullivan.  The  information,  Senator,  is  already  there.  Every- 
body knows  about  it. 

The  Chairman.  Have  you  heard  of  him  closing  any  of  them  around 
in  Miami  or  Miami  Beach  ? 

Mr.  Sullivan.  They  close  them  doAvn  occasionally  when  something 
happens.  For  instance,  the  Governor  was  down  here  in  February  of 
this  year  and  he  appealed  then,  after  going  back  to  Tallahassee,  to  all 


X)RGANIZED   CRIME'   IN   INTERSTATE    COMMERCE  173 

of  the  sheriffs  of  the  State  to  enforce  the  gambling  laws  and  every- 
thing closed  down.    There  was  no  difficulty  in  closing  them  down. 

The  Chairman.  For  how  long  did  they  close  down  '^ 

Mr.  Sullivan.  They  were  closed  down  for  the  rest  of  the  season. 
That  was  around  the  middle  of  February. 

The  Chairman.  Mr.  Sullivan,  the  committee  appreciates  the  fact 
that  you  have  had  a  great  deal  of  experience  in  this  kind  of  matter  in 
many  parts  of  the  United  States.  What  Federal  legislation  do  you 
recommend?  What  do  you  think  the  Federal  Government  can  or 
should  do  to  help  local  law-enforcement  officer  or  State  prosecuting 
attorneys  with  problems  like  you  have  here  ? 

Mr.  Sullivan.  I  think  first  of  all  that  obviously  there  should  be  a 
much  greater  tightening  of  the  enforcement  of  the  internal-revenue 
laws  and  that  the  settlement  of  income-tax  claims  against  known  rack- 
eteers should  be  made  very,  very  tight.  I  believe  that  the  present  law 
that  we  have  on  the  statute  books  on  income  tax,  if  strictly  enforced, 
Avould  put  a  lot  of  these  people  in  the  penitentiary. 

Secondly,  there  should  be  some  obvious  control  over  the  transmission 
of  information  that  does  not  appear  to  be  censorship. 

There  should  be,  I  believe,  some  control  over  gambling  and  race- 
track-information transmission,  and  then  I  believe  also  that  there 
should  be  some  thought  given  to  the  transportation  of  funds  obtained 
by  gambling  operators  locally  in  interstate  commerce  and  the  invest- 
ment of  those  funds  in  other  States.  I  don't  know  how  it  can  be  done, 
but  we  find  ourselves  in  this  area,  like  it  was  mentioned  this  morning 
in  testimony,  that  the  question  is,  'W^hy  can't  the  law  be  enforced?" 

We  are  confronted  here,  the  average  citizen  is,  with  the  fact  that 
there  is  a  tremendous  quantity  of  money  that  pours  in  here  and  goes 
into  the  gambling  rackets  and  when  people  run  for  ofhce  down  here, 
today,  it  means  every  candidate  must  be  able,  in  order  to  compete  with 
other  candidates,  to  put  up  tremendous  sums  of  money  to  have  any 
chance  at  all  of  winning.  The  only  people  that  seem  to  be  interested 
in  investing  in  a  candidate's  chances  for  election  are  the  fellows  that 
are  running  the  rackets.  The  average  legitimate  businessman  won't 
put  up  a  dime.  So,  the  result  is  that  the  good  will  of  the  people  that 
run  the  rackets  is  sought  by  candidates  as  the  only  means  whereby  a 
man  can  be  assured  of  election.  I  think  the  conditions  here  may  be  a 
little  bit  different  than  in  other  towns  because  of  the  vast  sums  of 
money  that  inure  to  the  benefit  of  the  racket  people  engaged  in  gam- 
bling in  this  area. 

The  Chairman.  In  your  statement,  I  know  you  don't  mean  to  refer 
to  all  of  the  condidates  who  are  elected,  do  you  ? 

Mr.  Sullivan.  No. 

The  Chairman.  I  know  that  there  are  a  good  number  of  honest 
public  officials  in  this  section,  and  you  referred  to  some  of  them? 

Mr.  Sullivan.  That  is  right.  I  don't  mean  every  candidate,  but  I 
mean  that  the  man  who  is  considering  whether  he  should  run  for  office 
or  not,  must  always  consider  whether  he  will  take  a  chance  and  try  to 
run  for  office  without  the  benefit  of  the  money  that  the  other  candi- 
dates have,  if  he  refuses  to  take  money  from  the  rackets. 

The  Chairman.  As  a  result  of  the  work  of  the  crime  commission 
and  the  increased  interest  on  the  part  of  some  of  the  officials  and  the 
people,  and  with  a  greater  appreciation  of  the  tremendous  evil  over  a 
Nation-wide  basis  as  to  the  kind  of  thing  that  has  been  going  on  here, 


174  ORGANIZED    CR3ME    IN    INTERSTATE    COMMERCE 

do  you  see  any  evidence  of  an  awakening  of  responsibility  on  the  part 
of  the  people  doing  something  about  this  problem  ? 

Mr.  Sullivan.  I  think  there  is  a  much  greater  civic  consciousness 
today  than  there  was  a  year  and  a  half  ago;  much  greater. 

The  Chairman.  I  think  one  trouble  sometimes  is  that  the  person 
who  makes  a  $2  bet  or  occasionally  engage  in  some  such  small  activity 
may  not  appreciate  the  fact  that  when  that  is  multiplied  a  million 
times,  it  has  a  corrupting  influence  on  government  all  over  the  country, 
and  that  it  becomes  a  very  serious  problem  and  that  is  what  this  com- 
mittee is  interested  in. 

Mr.  Sullivan,  we  appreciate  your  fine  work. 

I  believe  Senator  Hunt  has  another  word. 

Senator  Hunt.  Mr.  Sullivan,  I  wanted  to  get  your  reaction  to  this 
situation. 

We  have  noticed  in  some  of  the  evidence  that  has  been  submitted  to 
us  that  there  are  income-tax  returns  where  local  gamblers  make  large, 
generous,  and  many  contributions  to  local  charities;  to  the  Red  Cross, 
to  the  Boy  and  Girl  Scouts,  polio  campaigns,  the  cancer  drive.  All 
of  those  various  organizations  seem  to  accept  this  blood  money  as  a 
contribution.  Don't  you  think  that  these  organizations  probably 
would  be — would  it  not  be  better  for  the  community  if  they  wouldn't 
allow  these  gamblers  to  buy  public  opinion  or  buy  the  editorial  page  ? 
I  don't  mean  that  literally  as  far  as  the  papers  are  concerned,  but  just 
that  expense;  wouldn't  it  be  better  for  the  local  people  to  lay  off 
soliciting  these  gamblers  for  those  contributions,  for  naturally  when 
those  gamblers  make  such  contributions,  they  Iniow  what  they  are 
doing.  They  are  buying  public  opinion.  I  want  your  comments  on 
that. 

Mr.  Sullivan.  Undoubtedly  that  is  true,  because  the  contributions 
I'un  up  into  very  large  sums  of  money,  and,  of  course,  that  is  a  part 
of  the  public  relations  and  more  or  less  can  be  written  off  at  the  top 
as  a  deductible  item,  but  the  effect  on  the  community,  of  course,  is  that 
it  leaves  with  the  public  that  these  organizations  and  the  members 
of  these  organizations  the  feeling,  "Well,  that  is  a  good  group  be- 
cause they  are  supporting  our  worthy  enterprise  and  our  endeavors 
and  our  aims,"  and  it  certainly  has  a  bad  effect.  And,  of  course,  along 
with  that  money  or  income  that  is  derived  from  gambling  that  goes  to 
the  charitable  enterprise,  there  is  more  money  that  goes  into  the 
investments  in  the  political  candidates  for  office,  and  that  also  has 
an  effect  on  the  community  directly. 

The  Chairman.  Of  course,  the  answer  is,  it  would  be  better  to  get 
rid  of  them  and  leave  all  this  money  in  the  hands  of  the  decent  people 
so  that  they  could  give  it  to  charities. 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  Thank  you,  Mr.  Sullivan.  We  will  be  calling  on 
you  some  more. 

I  think  Mr.  S.  M.  Perkins  has  a  record  to  put  in  the  files.  Is  Mr. 
Perkins  here? 

Come  around,  Mr.  Perkins. 

TESTIMONY  OF  S.  M.  PERKINS,  ACCOUNTANT 

The  Chairman.  Mr.  Poi'kins,  do  you  solenmly  swear  that  the  testi- 
mony you  will  give  this  committee  will  be  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God? 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  175 

]\fr.  Perkins.  I  do. 

Tlie  Chairman.  All  right,  Mr.  Halley. 

Mr.  Halley.  Wliat  is  your  address,  Mr.  Perkins  ? 

Mr.  Perkins.  My  home  address  is  340  Candia,  Coral  Gables,  Fla. 

Mr.  Halley.  "Wliat  is  j-our  business  address? 

Mr.  Perkins.  505  First  National  Bank  Building,  Miami,  Fla. 

Mr.  Halley.  What  is  your  business? 

Mr.  Perkins.  My  business  is  public  bookkeeping  and  income-tax 
work. 

Mr.  Halley.  Were  you  served  with  a  subpena  of  this  committee  to 
produce  certain  records? 

Mr.  Perkins.  I  was. 

Mr.  Halley.  Pursuant  to  that  subpena,  have  you  produced  certain 
records  ? 

Mr.  Perkins.  I  brought  what  records  I  have. 

Mr.  Halley.  W^ould  you  state  what  records  you  have  produced  and 
give  them  to  the  committee  at  this  time? 

Mr.  Perkins.  This  subpena  called  for  a  great  lot  of  stuff  with 
which  I  have  no  connection  whatever.  The  only  work  I  do  that 
is  connected  with  the  S.  &  G.  Syndicate  is  Charles  Friedman's  and 
his  brother  Sam. 

Mr.  Halley.  What  work  do  you  do  for  Charles  Friedman  ? 

Mr.  Perkins.  I  keep  the  niglit-club  books  and  his  personal  books. 

Mr.  Halley.  What  work  do  you  do  for  Sam  Friedman  ? 

Mr.  Perkins.  He  is  Charles'  brother  and  they  are  partners. 

Mr.  Halley.  You  keep  the  night  club  and  personal  books  for  both 
Charles  Friedman  and  Sam  Friedman? 

Mr.  Perkins.  Yes ;  Charles  and  Sam. 

Mr.  Halley.  Have  you,  pursuant  to  subpena,  brought  all  of  the 
books  and  records  in  your  possession  relating  to  Charles  Friedman? 

Mr.  Perkins.  I  think  so. 

Mr.  Halley.  Will  you  produce  them  at  this  time? 

Mr.  Perkins.  The  books*  are  in  the  back  of  the  room,  and  tlie  can- 
celed checks. 

For  the  information  of  the  committee  I  don't  know  but  two  of  the 
people  connected  with  the  S.  &  G.  I  have  never  been  in  one  of  their 
bookie  establishments  and  I  have  never  been  in  their  offices.  I  have 
been  living  here  in  Miami  about  22  years,  and  I  think  I  have  done 
Charlie's  books  and  Sam's  for  about  15  years  during  that  time.  The 
only  figures  I  have  are  just  Charles'  and  Sam's  figures  on  the  night 
club. 

Mr.  Halley.  Will  you  now  produce  the  books  and  records  that  you 
do  have  relating  to  Charles  and  Sam  Friedman  and  identify  them 
as  you  produce  them  ? 

Mr.  Perkins.  Here  is  a  ledger  called  "general  ledger." 

The  Chairman.  Let  that  be  made  an  exhibit  to  your  testimon3^ 
That  will  be  exhibit  Xo.  116.  (Later  returned  to  witness  after  analy- 
sis by  committee. ) 

Mr.  Halley.  Is  that  Charles  and  Sam  together  ? 

Mr.  Perkins.  That  is  Charles  and  Sam.  They  trade  under  the 
name  of  Charlie's  Inn.     That  is  a  night  club. 

Mr.  Halley.  Charlie's  Inn  ? 

Mr.  Perkins.  A  night  club ;  yes.     This  is  the  journal. 


176  ORGANIZED   ORffME    IN   INTEKSTATiE   COMMERCE 

The  Chairman.  The  journal  will  be  made  exhibit  No.  117.  (Later 
returned  to  witness.) 

Mr.  Perkins.  And  this  is  the  canceled  checks  for  the  last — I  think 
they  go  back  to  January  1936  and  I  have  them  here  through  1949, 
and  the  1950's  are  in  my  office.     I  didn't  think  you  were  that  far  down. 

The  Chairman.  Mr.  Perkins,  it  may  be  we  will  want  to  see  the 
1950  checks. 

Mr.  Perkins.  You  can  get  them  in  20  minutes  if  you  want  them. 

The  Chairman.  I  think  it  would  be  well  if  you  would  bring  them 
over  and  the  auditors  of  the  committee  will  go  over  them  with  you. 

Mr.  Perkins.  All  right.  I  hope  to  be  able  to  do  that  tomorrow 
because  I  have  to  do  some  payroll  work  this  afternoon. 

Mr.  Halley.  Do  you  have  with  you  copies  of  income-tax  returns 
and  work  sheets  ? 

Mr.  Perkins.  The  accountants  have  those  files  and  I  didn't  bring 
them.  This  bunch  of  stuff  here  is  from  one  accountant's  office  and 
these  two  here  are  in  another,  and  they  have  my  inco&ie-tax  files. 

Mr.  Halley.  Wliich  accounts  are  they?     Will  you  name  them? 

Mr.  Perkins.  Joseph  A.  Post. 

Mr.  Halley.  What  is  his  address  ? 

Mr.  Perkins.  Certified  public  accountant. 

The  Chairman.  Let's  get  this  first.  You  are  entitled  to  get  copies 
of  the  income-tax  returns  ? 

Mr.  Perkins.  I  can  get  them. 

The  Chairman.  Will  you  bring  them  this  afternoon  ? 

Mr.  Perkins.  Yes.  I  would  like  to  bring  them  in  the  morning.  I 
don't  have  time  to  get  back. 

Tlie  Chairman.  That  is  all  right. 

Mr,  Perkins  Two  of  the  books  are  all  at  Blumin  &  Eoberts'  office, 
420  Lincoln  Road,  Miami  Beach.  They  seem  to  be  working  on  the 
income-tax  part  of  it  in  connection  with  an  income-tax  settlement 
with  the  Government. 

Mr.  Halley.  After  the  records  in  your  own  possession  have  been 
produced  and  the  records  in  tlie  possession  of  Joseph  A.  Post  and  the 
records  in  the  possession  of  Blumin  &  Eoberts  have  been  produced, 
will  the  committee  then  have  all  of  the  records  of  which  you  know 
pertaining  to  the  Friedmans  ? 

Mr.  Perkins.  They  will. 

Mr.  Halley.  Now,  will  you  deliver  to  the  committee  the  remaining 
records  that  you  have  here  ? 

Mr.  Perkins.  Here  is  the  journal  from  January  2, 1946.  They  have 
two  bank  accounts.  One  is  with  the  Mercantile  National  Bank,  on 
the  beach,  and  the  other  is  the  First  National  Bank,  on  Miam*  Beach. 
These  are  the  monthly  bank  statements  and  the  canceled  checks  cover- 
ing the  same  period. 

The  Chairman.  They  will  be  identified  as  exhibit  No.  118,  the  can- 
celed checks.     (Later  returned  to  witness.) 

Mr.  Perkins.  Here  are  statements  from  the  banks  for  the  year 
1949. 

The  Chairman.  Let  them  be  identified  as  exhibit  No.  119.  (Later 
returned  to  witness.) 

Mr.  Halley.  Is  that  all  you  have,  Mr.  Perkins  ? 

Mr.  Perkins.  That  is  all  I  have. 


ORGANIZE I>   CRIME   IN   INTERSTATE    COMMERCE  177 

The  Chairman.  Mr.  Perkins,  you  will  remain  under  subpena  in  the 
e\ent  the  committee  wants  to  question  you  about  any  of  these  records. 
Mr.  Peekins.  All  right. 

The  Chairman.  We  have  no  questions  to  ask  of  you  at  this  time. 
Mr.  Perkins.  Thank  you. 

TESTIMONY  OF  RICHARD  ERVIN,  ATTORNEY  GENERAL,  STATE 
or  FLORIDA,  ACCOMPANIED  BY  MESSRS.  GASQUE,  TONI,  AND 
HORTON 

Tlie  Chairman.  Do  you  solemnly  swear  that  the  testimony  you  will 
give  this  committee  will  be  the  whole  truth  and  nothing  but  the  truth, 
so  help  you  God  ? 

]Mr.  Ervin.  I  do. 

The  Chairman.  Mr.  Ervin,  the  committee  appreciates  your  attend- 
ance here.  Let  me  say  that  the  chairman  of  the  committee  is  ac- 
quainted with  Mr.  George  Owen  who  is  one  of  your  assistants  m 
the  States'  attorney's  office,  in  the  office  of  the  attorney  general,  I 
believe. 

Mr.  Ervin.  That  is  correct. 

The  Chairman.  Who  has  the  good  fortune  to  come  from  the  State 
of  Tennessee.  The  chairman  has  had  an  opportunity  over  the  course 
of  8  or  9  months  now  of  having  several  conferences  with  Mr.  Owen. 
Now,  before  we  proceed,  I  want  to  express  our  appreciation  to  him 
for  his  help  and  also  for  his  suggestions,  and  we  want  to  thank  you 
for  your  suggestions  and  cooperation  that  you  have  given  us. 

Mr.  Ervin.  Thank  you,  Senator.  George  Owen  is  a  very  fine  lawyer 
who  served  in  the  Navy  during  the  war  in  the  intelligence  division, 
and  prior  to  that  was  a  probation  officer  under  Federal  Judge  Long. 

The  Chairman.  Mr.  Ervin,  do  you  have  some  of  your  staff  whom 
you  would  like  to  have  come  up  with  you  ? 

Mr.  Ervin.  I  have  Mr.  Gasque  and  Mr.  Toni.  Mr.  Horton  will  be 
in  a  little  later.  He  had  a  court  hearing  at  2 :  30  and  lie  will  be  here 
in  a  moment. 

The  Chairman.  This  is  Mr.  Gasque  here  ? 

Mr.  Ervin.  Yes,  sir. 

The  Chairman,  liring  them  around  and  have  them  sit  with  you. 

Gentlemen,  in  case  you  have  something  to  do  or  say,  under  the  rules 
of  our  committee,  I  will  ask  you  to  be  sworn. 

Do  you  solemnly  swear  that  the  testimony  you  are  to  give  this  com- 
mittee will  be  the  whole  truth  and  nothing  but  the  truth,  so  help  you 
God? 

Mr.  Gasque.  I  do. 

Mr.  Toni.  I  do. 

Mr.  HoRTON.  r  do. 

Mr.  Halley.  Mr.  Ervin,  as  attorney  general  of  the  State  of  Florida, 
you  are  familiar  with  the  race  wire  service  which  has  been  operating 
in  the  State  of  Florida  for  the  past  several  years  ? 

Mr.  Ervin.  Yes,  sir;  I  am,  Mr.  Halley. 

Mr.  Halley.  In  fact,  you  testified  on  previous  occasions  Avith  rela- 
tion to  it  ? 

Mr.  Ervin.  Yes,  sir ;  at  the  hearing  of  the  subcommittee,  and  Sena- 
tor Hunt  was  there  at  the  time. 


l78  ORGANIZED    CRaME    IN   INTERSTATE   COMMERCE 

Mr.  Hallet.  As  you  know,  the  jurisdiction  is,  in  part,  the  same  as 
that  committee,  but  this  committee  has  jurisdiction  in  connection  with 
organized  crime  operating  through  the  channels  of  interstate  com- 
merce and  in  testifying  here  today  you  may  want  to  broaden  your 
testimony  within  the  scope  of  the  relevant  testimony  before  this  com- 
mittee. 

Before  proceeding,  however,  would  you  describe  section  550.07  of 
the  Florida  Statutes  of  1941  relating  to  campaign  contributions  and 
will  you  describe  the  effect  thereof^ 

Mr.  Ervin.  This  section  of  the  statutes,  Mr.  Halley,  makes  it  illegal 
for  any  race  track  to  contribute  to  the  campaign  of  any  political  party 
or  any  candidate  for  a  State,  county,  or  municipal  office.  And  then  it 
provides  that  the  racing  commission  may  revoke  the  license  or  permit 
if  it  is  determined  that  such  contributions  have  been  made. 

Mr.  Halley.  Is  the  prohibition  restricted  to  race  tracks  or  also  to 
persons  connected  with  race  ti'acks  or  controlling  race  tracks  or  who 
are  officers  or  stockholders  of  race  tracks  ^ 

Mr.  Ervin.  It  also  includes  those. 

Mr.  Halley.  In  other  words,  those  persons  would  be  prohibited, 
under  this  statute,  from  making  campaign  contributions ;  is  that  right  ? 

Mr.  Ervin.  Yes,  sir. 

Mr.  Halley.  Is  there  a  penal  provision,  Mr.  Attorney  General  ^ 

Mr.  Ervin.  I  am  not  familiar  with  it.  I  don't  believe  there  is.  I 
think  the  punishment  consists  in  the  revocation  of  a  permit. 

Mr.  Halley.  The  permit  referring  to  the  permit  to  operate  the  race 
track  ? 

Mr.  Ervin.  Yes. 

Mr.  Halley.  By  "race  track"  do  you  include  horse  race  tracks ;  is 
that  correct  ? 

Mr.  Ervin.  This  statute  from  which  that  section  is  taken  relates  to 
horse  and  dog  race  tracks. 

Mr.  Halley.  Horse  and  dog  race  tracks  ? 

]\Ir.  Ervin.  That  is  right. 

Mr.  Halley.  Now,  would  you  also  at  this  time  inform  the  commit- 
tee and  interpret  for  the  committee  section  365.02  of  the  law  relating 
to  railroads  and  other  regulated  utilities? 

Mr.  Ervin,  Oh,  yes.  Mr.  Halley,  that  section  is  the  1949  law  that 
banned  wire  service  to  bookmakers,  and  I  might  add  that  prior  to  the 
enactment  of  that  section  of  the  law,  the  Florida  Railroad  and  public 
utilities  commission  had  no  authority  to  cancel  any  private  wire  or 
leased  wire  because  it  was  being  used  to  furnish  bookmaking  informa- 
tion. That  was  a  new  innovation  in  our  State  enactments  and  started 
(his  chain  of  effort,  I  think,  to  shut  off  the  wire  service  to  the  book- 
makers. 

I  want  to  add  this,  if  I  may:  until  the  people  of  Miami  and  others 
who  are  interested  in  getting  this  bookie  bill  enacted,  it  wasn't  con- 
sidered by  State  officials  other  than  perhaps  the  Governor,  to  use  his 
powers  in  relation  to  seeing  that  the  laws  were  faithfully  executed  to 
enter  into  the  field  of  local  law  enforcement. 

I  have  heard  the  other  testimony  here.  When  I  was  campaigning, 
I  came  down  to  this  community  and  1  campaigned  aggressively  and 
I  saw  numerous  people  that  I  see  here  today.  We  thouglit  it  was  a 
local  problem.  I  have  been  attorney  there  for  the  State  roads  depart- 
ment, assistant  attorney  general,  and  we  hadn't  entered  into  it,  but 


(ORGANIZED   CRIIME!   IN   INTERSTATE    COMMERCE  179 

when  this  law  was  put  on  the  books,  I  was  immediately  made  a  defend- 
ant in  a  suit  to  have  it  declared  unconstitutional.  The  Supreme  Coun 
upheld  the  law. 

Mr.  Halley.  Could  you  give  the  dates  ? 

Mr.  Ekvin.  Yes.  The  Supreme  Court  upheld  that  law  on  December 
10,  1949.  The  legislature  enacted  this  law  at  the  regular  session  in 
May  of  19-19.     The  Supreme  Court  upheld  the  validity  of  this  law. 

AVe  discussed  the  matter  with  our  utilities  commission  and  the 
utilities  commission  pointed  out  to  me  that  every  one  of  these  contracts 
for  a  private  wire  passed  through  my  office  for  investigation  and  that 
1  had  to  make  a  report  on  it  and  it  was  my  duty  to  advise  whether  or 
not  I  thought  it  was  legal  or  illegal. 

So,  as  a  sworn  duty,  I  set  up  an  investigative  division  in  my  office. 
I  named  Assistant  Attorney  General  Toni  here,  and  I  secured  a  former 
investigator  for  the  Governor's  office  for  two  or  three  administrations 
in  the  past,  Mr.  Gasque. 

I  sent  them  out  to  investigate  the  wire-service  contracts.  There  was 
no  trouble,  Mr.  Halley,  in  shutting  off  the  service  that  was  furnished 
by  the  Western  Union.  That  it  was  a  notorious  contract  w^as  clear. 
There  were  140  drops,  I  believe,  in  south  Florida  where  the  wire  serv- 
ice was  furnished  by  Western  Union.  But  immediately  after  the  rail- 
road commission  canceled  out  the  Western  Union  wire-service  contract, 
that  was  all  part  of  the  Continental  Press  Service  and  the  other  serv- 
ices— Hagerty,  Interstate,  the  News,  and  the  others — we  found  that 
the  bookmakers  in  this  area  converted  to  telephone.  They  began  to 
use  long-distance  telephones. 

So,  in  order  to  make  a  showing — we  felt  we  had  that  duty  to  do — 
we  sent  Mr.  Gasque  and  Mr.  Toni  and  Mr.  Horton  here,  who  is  assist- 
ant attorney  general  in  Miami,  stationed  here  all  the  time,  and  Mr. 
Owen — they  began  a  drive  to  try  to  find  out  about  the  telephone  serv- 
ice and  we  did  find  it,  and  I  testified  before  your  Committee  on  Com- 
merce that  when  they  knocked  out  the  telegraph  service,  we  found 
that  they  were  using  the  telephone  to  call  out  of  the  State. 

We  think  that  there  is  no  question  but  that  the  Continental  Press 
Service  is  a  national  wire  service.  They  use  the  telephone  and  they 
use  any  means  that  is  possible  to  get  the  information,  and  we  have 
started  proceedings  to  knock  out  those  telephones.  It  is  an  inescapable 
duty. 

I  think  we  are  doing  the  best  we  can  and  we  are  cooperating  with 
the  local  enforcement  officials,  with  the  crime  commission  and  others 
to  do  the  job. 

I  want  to  commend  this  committee  on  what  it  is  doing,  too.  When 
I  got  into  this  phase  of  law  enforcement,  I  didn't  realize  the  ramifica- 
tions of  it.  I  didn't  realize  the  moral  and  economic  points  involved 
in  it,  but  there  is  no  question  in  my  mind,  Senator  Hunt,  but  what  we 
are  having  a  moral  reawakening  in  this  community  and  in  the  State. 

When  I  ran  for  office,  I  didn't  realize  what  the  implications  were. 
I  thought  that  I  would  sit  in  Tallahassee  and  be  the  State's  lawyer 
and  I  would  not  have  anything  in  particular  to  do  with  local  law 
enforcement. 

This  law  has  opened  our  eyes.  We  are  into  it,  and  I  commend  this 
committee  that  it  is  something  that  we  need  here. 

The  majority  of  the  people  in  Miami,  I  think,  sympathize  with 
this  thing.    There  are  a  great  many  people  in  the  courtroom  today 


180  ORGANIZED   CRIME    IN   INTE'RSTAT'E   COMMERCE 

that  disagree.  They  have  all  kinds  of  arguments.  They  say,  "Why, 
you  are  just  a  crusader,  a  farmer.  You  have  no  chance  for  the  enforc- 
ing of  the  law  against  gambling." 

They  say,  too.  that  people  are  going  to  gamble  regardless  of  what 
you  may  do.  They  say  that  it  is  necessary  for  the  tourist  business. 
I  think  they  are  mistaken. 

Conditions  have  gone  on  here  so  long  as  they  have  that  they  don't 
realize  that  there  is  a  moral  reawakening  in  this  country,  and  I  think 
Senator  Kefauver  and  Senator  McFarland  and  Senator  Hunt  realize 
the  implications  of  it,  and  even  we  can't  stop  crime.  We  can't  stop 
traffic  violations,  but  we  can  make  an  effort  and  do  the  best  we  can. 
The  newspapers  are  doing  their  part.  The  crime  commission  and 
many  good  citizens  and  the  people  of  Miami,  I  think  the  majority  of 
them,  are  going  to  join  in  this  effort.  We  need  the  assistance  of  the 
Federal  Government. 

A  lot  of  people  say  it  is  not  right  for  the  Federal  Government  to 
encroach  on  our  law  enforcement,  but  the  picture  is  well  known  about 
the  tie-ins  of  this  wire  network  and  all  the  people  who  are  a  part  of 
it.  They  are  encroaching  on  us,  and  on  the  morals  of  our  community, 
and  we  need  the  help  of  the  Federal  Government. 

I  think  that  the  bill  that  your  committee  put  out  is  a  good  bill,  but 
I  don't  think  it  goes  far  enough.  I  wish  it  were  more  on  the  order  of 
our  State  law.  I  wish  that  we  could  shut  off  the  rapid  results  as  well 
as  the  information  about  betting  and  the  odds  and  I  think,  too,  that 
some  of  these  legitimate  news  disseminators  ought  to  join  and  help 
us  in  it,  and  I  know  that  I  am  going  on  that  and  feel  that  you  are  not 
particularly  interested,  but  the  thing  is  educational,  and  I  think  that 
our  law  enforcement  officers,  as  Senator  Kefauver  said  the  other 
day,  many  of  them  are  honest  and  conscientious  and  they  realize  that 
the  State  means  business  and  that  the  Federal  Government  means 
business,  and  that  we  will  get  somewhere,  and  we  commend  you  for  the 
effort  you  are  making,  and  I  hope  we  have  a  Federal  law  putting  the 
crime  commission,  the  FBI  and  the  others  into  the  field  so  as  to  sup- 
plement the  effort  that  is  made  here  in  the  State. 

Mr.  Hallet.  Mr.  Ervin,  in  the  early  part  of  1949,  was  the  wire 
service  discontinued  to  the  Miami  Beach  area  ? 

Mr.  Ervin.  It  may  have  been,  but  it  certainly  wasn't  by  reason  of 
any  action  I  took  or  anyone  in  Tallahassee.  I  don't  know  about  that. 
The  wire  service — the  telegraph  wire  service — was  cut  off  sometime 
in  December  of  1949. 

I  have  heard  testimony  here  of  Mr.  Sullivan,  and  it  may  have  been 
cut  off  because  of  some  disagreement  among  the  people  who  have  car- 
ried on  those  operations,  but  I  don't  think  the  men  in  my  office  had 
anything  to  do  with  it. 

Mr.  Halley.  Didn't  it  come  to  your  unofficial  attention  that  in  the 
early  part  of  1949,  without  any  official  action,  but  purely  because  of 
some  dispute  among  the  bookmaking  establishments,  the  wire  service 
was  cut  off? 

Mr.  Ervin.  Mr.  Halley,  I  did  hear  that,  but  I  want  to  confess  to 
you  that  back  in  the  early  part  of  1949  this  business  of  entering  into 
local  law  enforcement  on  bookies  simply  didn't — it  wasn't  something 
that  we  were  greatly  concerned  with,  and  I  didn't  pay  much  attention 
to  it. 


ORGANIZED   CRIME   IN   INTERSTATE    COMMERCE  181 

Mr.  Halley.  But  since  then  you  have  learned  that  it  is  a  serious 
matter  of  at  least  State-wide  concern? 

Mr.  Ervin.  Yes ;  ^Ye  feel  that  it  is,  and  we  follow  the  policy  in  our 
legislature  that  recognizes  it  as  an  evil. 

This  law  was  only  passed  after  two  scandals.  They  tried  to  pass 
it  in  the  1948  legislature.  The  scandals  that  developed  there  were  on 
bribery  attempts,  and  they  probably  wouldn't  have  passed  it  in  the 
1949  session  except  for  bribery  attempt  which  was  disclosed  and 
brought  to  light,  and  that  may  have  had  a  great  deal  to  do  with  its 
passage. 

Mr.  Hallet.  I  believe  you  have  gone  on  record  as  stating  that  the 
bookmaking  and  gambling  is  dominated  by  syndicates  with  men  in  it 
so  big  that  they  can  bribe  and  influence  public  officials  ? 

Mr.  Ervin.  I  feel  that  that  is  true,  Mr.  Halley.  The  profit  motive 
in  this  thing  is  tremendous,  and  they  naturally  have,  to  protect  their 
investment;  and,  if  they  can  bribe  or  buy  anybody,  they  naturally 
will  do  it. 

Mr.  Halley.  Have  you  any  specific  evidence  that  you  could  bring 
to  the  committee's  attention  at  this  time  relating  to  those  matters  ? 

Mr.  Ervin.  No,  sir;  I  cannot  give  you  an  instance  of  bribery  at- 
tempts. I  do  know,  though,  that  other  than  those  two  that  I  tolcl  you 
about  in  the  legislature — I  know  it  was  stated  many  times  in  the 
newspapers--and  I  think  Senator  McFarland  stated  up  there  that  it 
was  recognized  here  in  Florida  that  there  was  a  purchase  of  official 
tolerance  and  because  it  was  so  widespread  and  so  notorious  and  must 
have  been — there  again,  I  have  no  specific  evidence  on  it,  but  it  couldn't 
have  been  permitted  without  condonation  on  the  part  of  some  public 
officials. 

Mr.  Halley.  That  is  all  I  have. 

The  Chairman.  Senator  Hunt,  do  you  have  any  questions  ? 

Senator  Hunt.  No;  I  don't  believe  I  have  any  questions,  Mr.  Chair- 
man, but  I  should  like  to  compliment  the  attorney  general  on  his  state- 
ment with  reference  to  what  effect  he  feels  this  racket  has  on  morals 
and  the  economic  effect  it  has  on  the  locality. 

I  would  like  to  make  this  one  observation,  Attorney  General  Ervin : 
Over  a  long  period  of  years,  to  the  best  of  my  knowledge,  the  man 
who  runs  for  oftice  on  a  program  of  good  clean  law  enforcement,  arid 
if  it  is  fought  on  those  grounds  and  those  grounds  alone,  generally 
wins. 

Mr.  Ervin.  Senator,  I  hope  so. 

Senator  Hunt.  There  are  exceptions  to  every  rule. 

Mr.  Ervin.  That  is  a  chance  that  I  am  taking,  and  I  may  have 
guessed  wrong  on  it,  but  I  don't  feel  that  I  have  any  alternative. 

In  view  of  the  situation,  I  will  state  the  policy  and  then  what  I 
hope  is  an  innate  feeling  about  the  subject. 

Senator  Hunt.  I  don't  think  you  have  guessed  wrong.  I  think  the 
statements  that  you  have  made  today  have  been  made  known  through 
the  State  of  Florida  through  the  press,  and  they  have  enhanced  your 
position  no  end,  Mr.  Attorney  General. 

The  Chairman.  Mr.  Ervin,  let  me  get  this  clear  now.  Prior  to 
the  passage  of  this  Wire  Act,  the  wire  services  operated  in  sending 
the  news  out  so  that  any  bookie  could  get  it  and  there  was  no  restraint 
on  their  operation? 

Mr.  Ervin.  Yes. 


182  lORG'ANIZED   CRIME    IN    INTERSTATE    OOMMERCE 

The  Chairman.  As  I  understand  it,  the  Wire  Act  prevents  the 
intrastate  use  of  wire  services ;  is  that  right? 

Mr.  Ervin.  That  is  true. 

The  Chairman.  After  the  passage  of  the  act,  didn't  you  have  a  great 
deal  of  difficuky  about  the  information  being  sent  to  some  out-of-State 
place  and  then  coming  back  on  the  Continental  Wire  Service? 

Mr.  Ervin.  We  did.     It  came  back. 

The  Chairman.  Tell  us  about  that. 

Mr.  Ervin.  I  would  like  for  Mr.  Horton  to  tell  you  that,  if  you 
don't  mind,  Senator. 

I  will  say  this,  though:  We  found  that  Continental  Press  Service 
on  tracks  out  of  the  State  as  well  as  tracks  in  Florida — the  Associated 
Press  is  a  subscriber  of  Continental  Press  Service,  and  before  the  in- 
formation would  be  sent  out  by  Associated  Press  to  its  subscribers, 
flashed  back  by  Associated  Press  wires  would  be  the  Continental  Press 
Service,  and  it  would  come  back  in  2  or  3  minutes  after  races  were  run 
at  practically  any  track  in  the  country. 

The  Chairman.  You  mean  after  a  race  was  run,  say,  at  Hialeah? 

Mr.  Ervin.  Yes. 

The  Chairman  .  The  news  would  get  through  ? 

Mr.  Ervin.  It  would  come  back. 

The  Chairman.  And  come  back  on  wire  service  within  2  or  3  min- 
utes after  a  race  would  be  run? 

Mr.  Ervin.  That  is  right. 

The  Chairman.  Do  you  feel  that  that  was  beyond  your  jurisdiction 
because  it  was  an  interstate  transaction  and  there  was  nothing  you 
could  do  about  it? 

Mr.  Ervin.  I  felt  there  was  nothing  we  could  do  about  it,  Senator, 
and  there  is  no  way  to  approach  it  unless  we  get  Federal  legislation. 
Assuming  that  we  do  get  the  cooperation  of  the  legitimate  news  serv- 
ices and  they  cut  it  off  and  delay  it  a  few  minutes,  anyone  can  call 
Valdosta,  Ga. ;  or  call  New  Orleans,  La.,  and  get  the  race  results  from 
any  subscriber  that  may  be  on  Associated  Press'  or  Continental  Press' 
line  or  anyone. 

This  system  of  getting  information  is  so  widespread  that  all  you 
need  is  a  long-distance  line  to  pick  it  up. 

We  made  a  raid  in  Jacksonville  only  a  few  clays  ago  and  we  found 
that  they  were  calling  Minneapolis,  Minn. ;  Valdosta,  Ga. ;  Augusta, 
Ga. ;  and  Bristol,  Tenn. 

The  Chairman.  For  your  information,  that  Bristol  is  on  the  State 
line  between  Tennessee  and  Virginia.  The  telephone  company  may 
be  in  Tennessee,  but  I  am  sure  the  information  came  from  across  the 
line  in  the  other  State.    [Laughter.] 

You  have  examined  the  police  power  to  cope  with  these  transac- 
tions and  you  have  determined  after  an  exhaustive  examination  that 
you  have  no  riglit  to  interfere  with  interstate  communications  ? 

Mr.  Ervin.  That  is  right. 

The  Chairman.  By  State  statute? 

Mr.  Ervin.  That  is  right. 

The  Chairman.  Mr.  Ervin,  you  spoke  of  the  1947  legislature  and 
the  public  scandal  of  trying  to  bribe  a  member  of  t}\e  legislature  to 
use  influence  to  prevent  the  passage  of  this  Wire  Service  Act? 

Mr.  Ervin.  Yes. 


ORGANIZED    CRIIME    IN    INTERSTATE    COMMERCE  183 

The  CiiAiRMAX.  And  it  was  defeated  in  that  legislature? 

Mr.  Ervin.  Yes. 

The  Chairman.  Who  was  it  that  was  trying  to  stop  the  passage  of 
the  legislation? 

Mr.  E'rvix.  Senator,  I  don't  know  who  the  parties  were  that  sup- 
plied the  money,  but  I  do  know  that  two  members  of  the  House  of 
Kepresentatives  have  publicly  stated  that  another  member  of  the 
House  of  Representatives  olfered  them  a  bribe  to  vote  against  the  bill. 

The  Chairman,  Was  it  a  very  large  sum  of  money,  too? 

Mr.  Ervin.  No,  sir;  it  was  not.  I  think  it  was  only  $500.  At  the 
1'.>4U  legislature,  it  was  supposed  to  have  gone  up  to  $2,000. 

Tlie  Chairman.  Who  brought  the  injunction  suit  against  the  State 
for  testing  the  constitutionality  of  this  law  ? 

Mr.  Ervin.  That  was  brought  by  Walter  M.  Hagerty,  John  Mc- 
Henry,  a  corporation  by  the  name  of  Interstate  News  Service,  and  H. 
E  Bilson  Radio  Program  Service. 

The  Chairman.  What  sort  of  cooperation  have  you  gotten  out  of 
the  telephone  company  in  Florida  in  your  efforts  to  prevent  tele- 
phones from  being  in  places  where  the  users  can  telephone  information 
out  immediately  ? 

]Mr.  Ervin.  We  are  getting  better  cooperation  the  farther  we  go 
along. 

The  Chairman.  What  do  you  mean  by  you  "are  getting  better  co- 
operation"? 

Mr.  Ervin.  They  would  want  to  give  us  no  information  about  tele- 
])hones  nor  would  they  let  us  go  in  and  check  with  them  on  phones 
that  were  listed  as  possible  phones  of  bookmakers. 

After  we  got  further  along  with  it  and  they  saw  that  we  meant 
business,  they  began  to  allow  us  to  check  their  toll  records  and  to  give 
us  information  when  we  found  a  phone  and  gave  them  a  number 
for  it.  ^ 

They  said  they  didn't  want  to  get  into  the  police  end  of  it.  They 
didn't  want  to  assume  that  responsibility. 

We  are  doing  much  better,  and  I  would  not  want  to  be  critical  of 
them  in  view  of  the  fact  that  they  have  helped  us  in  the  last  few 
months. 

The  Chairman.  Can  you  or  some  of  your  deputies  or  assistants 
tell  about  telephones  in  very  strange  places  that  appeared  around 
race  tracks  here  in  Florida? 

Mr.  Ervin.  Mr,  Toni,  can  you  tell  us  ? 

^Ir.  ToNi.  The  most  typical  installation  that  has  been  depended  upon 
in  the  past  and  up  until  this  season  was  known  as  Sunshine  Park  in 
a  shack  right  across  from  the  race  track,  where  they  had  a  turret 
ari'angement  on  top  of  the  shack  and  a  view  of  the  turf  board  where 
you  could  read  the  turf  board  with  a  pair  of  binoculars. 

They  had  telephone  connections  there.  We  found  two  men  there 
who  admitted  or  stated  that  they  were  employees  of  the  Continental 
Press  Service.    We  found 

The  Chairman.  Will  j^ou  furnish  their  names  for  the  record — their 
names  and  addresses? 

Mr.  ToNi.  Alfred  Olsen 

The  Chairman.  Give  us  what  you  have  now,  whatever  you  have 
now,  and  you  can  give  us  the  rest  later. 

68958 — 50— pt.  1 13 


184  ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE 

Mr.  ToNi.  That  particular  location  was  on  the  Continental  wire 
circuit  before  the  Western  Union  wire  was  canceled  out.  We  found 
the  fuse  box  in  there.  Then  there  were — we  found  similar  installations 
around  Tropical,  Hialeah,  and  Gulf  Stream,  where  there  were  drops 
on  the  old  Continental  race-wire  line. 

The  Chairman.  Did  j^ou  find  those  people  worked  for  Conti- 
nental also? 

Mr.  ToNi.  No;  we  were  unable  to  catch  them,  but  they  were  oper- 
ating at  those  places.  They  had  abandoned  the  known«look-out  places 
and  had  set  up  telephone  connections  in  other  locations. 

The  Chairman.  Are  there  any  other  })laces — aspects,  rather,  of 
this  matter — that  }■  on  can  tell  us  about,  Mi-.  Toni  ? 

Mr.  Toni.  I  think  Mr.  Horton  can  describe  the  leased-wire  circuits 
from  Baltimore  which  ran  into  the  State  to  Key  West  and  the  circuits 
which  went  out  of  the  State  on  which  the  Florida  race-track  infor- 
mation was  relayed  better  than  I  can. 

The  Chairman.  Thank  you  very  much,  ]Slr.  Toni.  Xow.  ^Ir. 
Horton,  will  you  tell  us  about  your  kno>v ledge  of  the  matter  ? 

Mr.  Horton.  Senator,  I  don't  know  whether  you  are  interested  in 
all  this,  but  it  is  a  phase  I  think  you  might  be  interested  in. 

Up  until  the  set-up  until  December  1049  there  was  a  circuit  oper- 
ated by  the  Western  Union  Telegraph  Co.  Xow.  to  briefly  state  this, 
the  Radio  Program  Service  of  621  Munsey  Building,  Baltimore.  Md., 
had  a  connection  with  the  Intrastate  News  Service,  which  had  its  ori- 
gin in  Florida,  in  Jacksonville.  The  Radio  Program  Service  was 
operated  under  the  management  of  one  H.  E.  Bilson.  I  am  speaking 
now  with  copies  of  the  contracts  filed  with  the  public-utilities  com- 
mission before  me,  which  H.  E.  Bilson  signed  as  an  officer  of  the  Radio 
Progi'am  Service.  That  tied  the  link  of  Radio  Program  Service  out 
of  Baltimore  to  Florida. 

The  Intrastate  News  Service  of  which  we  have  contracts  here  also 
applied  to  the  Western  Union  Telegraph  Co.  and  was  furnished  leased- 
wire  service  extending  from  Jacksonville  into  Key  West. 

Now,  when  those  circuits  went  out,  why,  the  only  other  alternative, 
I  presume,  was  for  the  people  who  wanted  that  type  of  information  to 
obtain  it  by  telephone.  In  the  course  of  our  investigation,  after  the 
wire  services  went  out,  we  found  that  some  of  these  known  drops  on 
the  circuit  of  the  Intrastate  News  which  was  also  on  Radio  Program 
Service  in  Baltimore  were  then  calling  the  number  of  Radio  Progi-am 
Service  in  Baltimore,  the  same  identical  group. 

It  is  a  matter  of  public  record  in  the  Federal  Reporter  system  the 
disclosure  made  by  McBride  in  the  case  involving  the  Western  Union 
Telegraph  Co.  in  California.  It  is  a  circuit  court  of  appeals  decision 
in  the  ninth  circuit  decided  in  1949  in  which  McBride  made  the  admis- 
sion he  was  a  furnisher  of  information  to  the  group  in  the  Munsey 
Building  in  Baltimore,  Md.  That  is  the  place  where  the  southern 
bookmaker  operators  obtain  their  information  on  races. 

There  is  a  tie-up  shown  in  these  contracts  at  the  time  of  the  wire 
service  with  an  address  in  New  Orleans.  Now,  that  address  in  New 
Orleans  has  been  supplemented  since  the  wire  service  is  out  with  tele- 
{)hone  service  and  these  points  of  interest  in  Florida  now  call  either 
New  Orleans  or  they  call  Baltimore  or  they  call  Chicago  directly.  And, 
we  found  in  the  course  of  our  investigation  that  direct  calls  are  made 
to  Continental  Press  Service  in  Chicatro. 


ORGANIZED    CRIME    IN    INTERSTATE    CORIMERCE  185 

That  is  all  I  liaA'e  that  I  Ijelicve  would  be  of  direct  interest  to  the 
committee. 

The  Chairman.  Mr.  Horton,  do  you  have  copies  of  the  various  con- 
tracts and  documents  that  can  be  turned  over  to  the  committee? 

Mr.  HoRTON.  These  are  the  only  copies  that  I  have.  I  will  be  glad 
to  have  some  copies  made  and  furnish  them  to  the  committee. 

The  Chairman.  If  you  will,  I  will  appreciate  it.  Do  you  then  as  a 
specialist  in  this  type  of  thing  join  in  the  Attorney  General's  recom- 
mendation that  some  method  is  needed  to  supplement  the  State  laws 
by  the  Federal  control  of  communications  if  you  are  going  to  keep  this 
information  from  being  used  for  gambling  purposes? 

jNfi'.  HoRTON.  Senator,  I  am  convinced  that  the  Federal  Government 
will  have  to  in  some  way  supplement  the  State  authority  beyond  its 
borders  because  we  have  no  authority  over  calls  that  originate  in  the 
State  going  outside  of  the  State  or  calls  that  originate  in  other 
States  coming  in  here  and  we  feel  that  the  Federal  Government  is  the 
only  resort  we  have  to  stop  that  practice. 

The  Chairman.  Any  questions,  Senator  Hunt? 

Senator  Hunt.  No. 

The  Chairman.  Mr.  Halley  ? 

Mr.  Hailey.  Xone  of  this  witness,  but  with  the  permission  of  the 
committee  I  would  like  to  ask  a  few  questions  of  Mr.  Gasque. 

Tlie  Chairman.  All  right. 

iNIr.  Halley.  Mr.  Gasque,  were  you  in  the  court  while  Dan  Sullivan 
testified? 

Mr.  Gasque.  Yes,  sir. 

Mr.  Halley.  You  may  recall  that  one  of  the  persons  about  wdioni 
he  testified  was  Samuel  Bratt 

Mr.  Gasque.  Yes,  sir. 

Mr.  Halley.  Who  was  active  in  the  operation  of  the  Colonial  Iniii 
and  Green  Acres. 

Mr.  Gasque.  Yes,  sir. 

^Ir.  Halley.  Do  you  know  :Mr.  Bratt  ? 

Mr.  Gasque.  Yes,  sir. 

Mr.  Halley.  Have  you  had  aii}^  dealings  with  him  ? 

Mr.  Gasque.  No,  sir. 

Mr.  Halley.  "Would  you  describe  the  nature  of  your  knowledge  of 
and  acquaintance  with  Mr.  Bratt? 

Mr,  Gasque.  I  will  be  glad  to.  Back  7  or  8  years  ago  Mr.  Bratt's 
attorney,  who  is  Senator  John  E,  Mathews,  from  Jacksonville,  who 
is  my  senator  from  my  home-town  county,  introduced  me  to  jNIr.  Bratt 
in  the  halls  of  the  legislature  in  Tallahassee.  Since  that  time  I  have 
in  the  course  of  my  work  through  south  Florida  as  an  investigator 
for  the  Governor's  office,  and  recently  for  the  attorney  general's  office, 
come  in  contact  with  Mr.  Bratt,  I  have  gone  to  Mr,  Bratt  at  times 
down  here  knowing  that  he  had  to  do  with  the  wire  service  and  got 
information  from  him  on  people  that  I  was  checking  on.  He  would 
very  graciously  give  me  that  and  I  think  on  several  occasions  he  has 
called  me  long  distance  from  his  home  to  mine  in  Jacksonville  and  on 
some  occasions  he  would  deliver  a  message  like  this:  He  was  unable 
to  contact  Mr,  Mathews  and  he  would  like  for  me  to  contact  him  anil 
let  him  know  that  he  would  be  in  Jacksonville  the  next  day  on  such  and 
such  a  plane  and  would  like  to  see  him  in  his  office  and  that  he  was  un- 
able to  set  him. 


186  ORGANIZED    CHIME    IX    IXTE'RSTATE    OOMIVjERC'E 

I  had  the  misfortune,  Mr.  Halley.  in  1947  to  have  a  cancer  of  this 
eye  and  I  had  spent  several  months  in  the  hospital,  in  hospitals.  Mr. 
Bratt,  I  presume,  knowing  the  position  I  held  with  the  Government, 
thought  it  would  be  a  nice  thing  to  call  and  make  inquiry  as  to  how  I 
was.  Of  course,  I  was  in  the  hospital  and  wasn't  at  home,  but  he  would 
call  and  inquire  from  Mrs.  Gasque. 

So  far  as  business  connections  in  any  way  are  concerned  I  know  him 
no  more  than  I  know  Costello,  Ericson,  the  Capone  boy,  the  McBride 
boy,  and  all  these  other  characters  whose  names  have  l)een  mentioned, 
and  also  Mr.  Cohen.  I  know  Costello  when  I  see  him.  I  know  Ericson 
when  I  see  him.  I  have  spoken  to  him  in  Miami,  in  some  places  in 
Miami  in  the  last  16  years  that  I  have  been  traveling  the  State. 

I  would  like  to  say  this  much,  that  I  went  to  work  in  Tallahassee 
under  Governor  Scholtz.  I  worked  under  his  administration  and  then 
followed  4  years  inider  Governor  Cone  and  4  years  under  Holland,  now 
United  States  Senator,  and  4  years  under  the  former  Governor  pre- 
ceding. In  those  years  I  have  come  in  contact  with  lots  and  lots  of 
criminals  in  my  work  and  I  always  have  felt  that  whatever  little  suc- 
cess I  might  have  had  in  my  work  is  due  because  I  haven't  tried  to 
be  hard-boiled  or  be  too  high-hatted  to  speak  to  anybody  regardless 
of  how  low  he  might  be. 

As  far  as  any  connections  in  business  with  him  are  concerned  I 
never  had  any.  We  knew  he  had  no  interest  in  bookmaking  as  far  as 
the  bookie  business  is  concerned.  As  far  as  we  knew  he  would  deal  with 
Mr.  Toni  and  myself  and  on  different  occasions  we  would  go  to  him  and 
ask  him  for  certain  information  this  last  winter.  He  would  find  it 
out  for  us  and  if  we  happened  to  be  gone  he  would  call  to  Jacksonville 
and  Tallahassee  to  locate  us  and  give  us  whatever  information  we 
wanted. 

That  is  the  entire  nature  of  my  connection  with  Mr.  Bratt. 

Mr.  Halley.  Sir,  in  the  early  part  of  1950  did  you  have  occasion 
to  make  an  official  investigation,  to  make  official  investigations  in  the 
Miami  area? 

Mr.  Gasque.  Yes,  sir. 

Mr,  Halley.  You  were  staying  at  the  El  Comodoro  Hotel  ? 

Mr,  Gasque.  Yes,  sir. 

Mr.  Halley.  Did  you  have  a  number  of  telephone  calls  from  Mr. 
Bratt  during  that  period  ? 

Mr.  Gasque.  I  wouldn't  say  a  number.  I  wouldn't  know  how  many. 
He  called  several  times  to  Mr.  Toni  and  myself.  He  tried  to  get  hold 
of  one. 

Mr.  Halley.  Well,  did  Mr.  Bratt  call  as  often  as  four  times  in  a 
single  day  at  the  El  Comodoro  ? 

Mr.  Gasque.  I  don't  recall  if  he  did,  Mr.  Halley. 

Mr.  Halley.  If  he  did  would  you  be  surprised  ? 

Mr.  Gasque.  No,  sir ;    I  would  not. 

Mr.  Haixey.  Could  you  recall  at  this  time  the  subject  matter  of 
the  calls  from  Mr.  Bratt? 

Mr.  Gasque.  He  was  giving  us  information  on  what  we  had  asked 
him  to  check  on  for  us. 

Mr.  Halley.  What  information  was  he  giving? 

Mr.  Gasque.  About  bookmaking  over  there  in  Broward  County 
where  we  cleaned  the  county  up. 


ORGANIZED    CRJME:   IN   INTERSTATE    COMMERCE  187 

^Ir.  Hali>ey.  Did  you  make  memoiuiida  about  that  information 
and  put  it  in  your  official  files? 

Mr.  Gasque.  No,  sir.  I  just  made  notes  of  it  and  put  it  in  my 
pocket. 

Mr.  Hallet.  You  never  filed  reports  about  it  with  your  office? 

Mr.  Gasque.  No,  sir;  not  where  we  got  the  information  from  Mr. 
Bratt. 

Mr.  Halley.  I  have  no  further  questions  at  this  time,  Mr.  Chairman. 

The  Chairman.  All  right,  sir.  Mr.  Ervin,  there  was  one  other 
question  I  wanted  to  ask  you.  Where  does  the  responsibility  for  the 
jn-osecution  of  criminal  violations  under  the  State  law  rest  here  in 
Dade  County  and  Broward  County? 

Mr.  Ervin.  Senator,  there  has  been  a  Supreme  Court  decision  on 
that  on  a  case  brought  by  my  predecessor,  Mr.  Watson.  I  will  give 
you  the  citation.  In  that  case  the  Court  said  there  is  a  line  of  demarca- 
tion between  the  duties  of  the  attorney  general  and  the  State  attorneys. 

The  State  attorneys  and  the  county  solicitors  they  have  the  discre- 
1  ion  to  determine  whether  to  prosecute  or  not  prosecute  for  a  local  law 
\  iolation.  They  are  elected  officials  and  they  determine  from  the 
facts  whether  or  not  they  should  prosecute. 

Our  office  assists  them  and  we  have  criminal  appeals.  If  they  call 
on  us  to  brief  a  question  we  do  it,  but  we  have  no  control  over  their 
discretion  of  their  right  to  prosecute  or  not  to  prosecute. 

The  Chairman.  You  mean,  if  the  law  is  bein^  flagrantly  violated 
on  its  face,  or,  if  the  laws  are  being  flagrantly  violated  on  their  face 
Aou  have  no  discretion  about  the  matter  in  doing  anything  about  it? 

]Mr.  Ervin.  Senator,  I  cannot  control  their  discretion  as  to  whether 
or  not  they  shall  prosecute.  Wherever  we  have  a  complaint  regarding 
a  local  law  violation  we  transmit  that  to  the  State  attorney  or  the 
county  solicitor  and  ask  them  to  investigate  it  and  determine  whether 
or  not  prosecution  is  warranted. 

The  Chairman.  Have  you  done  that ■ 

]Mr.  Ervin.  We  have  done  that. 

The  Chairman.  In  Broward  and  Dade  Counties? 

]Mr.  Ervin.  You  mean,  with  regard  to  this  crime  situation  ? 

The  Chairman.  Yes ;  that  is  right. 

Mr.  Ervin.  Senator,  I  don't  recall  having  had  a  request  of  that 
kind  that  we  transmitted  to  those  officials  either  in  Broward  County 
or  Dade  County.  We  consulted  with  them  about  prosecution  of  these 
cases. 

You  see,  where  we  made  a  raid  and  find  someone 

The  Chairman.  Of  course,  Mr.  Ervin,  all  you  need  to  do  is  read 
the  newspapers  to  know  what  is  going  on  here. 

Mr.  Ervin.  That  is  true. 

The  Chairman.  Well,  whose  responsibility  is  it  to  prosecute  locally  ? 

Mr.  Ervin.  It  is  the  responsibility  of  the  local  prosecution  office. 

The  CiiAiRMAN.  Do  you  know  why  it  hasn't  been  done  ? 

Mr.  ER^^N.  I  think  that  it  probably  goes  back  to  the  customs  of  the 
people  here.  There  has  been  in  this  area  a  so-called  liberal  policy. 
They  didn't  want  to  crack  down  on  certain  types  of  gambling.  I  sup- 
pose much  of  it  grew  out  of  that.  Senator. 

Mr.  HoRTON.  Senator,  may  I  just  make  an  observation  on  behalf 
of  Attorney  General  Ervin,  that  we  have  signed  affidavits  as  to  the 
basis  of  the  complaints  in  Dade  County  and  in  Broward  County  in 


188  ORGANIZED    ORUME    IN   INTERSTATE    COMMERCE 

connection  with  our  investigation  of  bookmaking  operations  and  some 
of  these  cases,  as  far  as  I  know,  are  under  prosecution  now. 

I  don't  know  the  results  of  any  particular  case  that  I  can  tell  you 
now,  but  we  have  affidavits  of  violations  in  these  two  counties  that  have 
been  brought  to  the  attention  of  the  local  law-enforcement  officers  and 
the  results,  and  complaints  have  been  filed  against  those  people. 

I  don't  think  Mr.  Ervin  knows  of  that  specifically. 

The  Chairman.  What  complaints  have  been  filed  ?  Do  vou  know, 
Mr.  Horton? 

Mr.  HoRTON.  Well,  in  particular,  there  was  a  search  warrant  and  a 
warrant  for  arrest  issued  against  a  bookmaking  operation  at  the 
Saxony  Hotel  in  Miami  Beach.  That  was  based  on  information 
which  we  had  obtained  through  other  local  law  enforcement  officers 
who  cooperated  with  us  and  the  sheriff's  office  of  Dade  County  served 
fi  warrant  and  as  a  basis  of  that  complaint  arrests  were  made,  charges 
were  made  against  the  individuals  who  were  found  in  that  bookmaking 
establishment. 

The  Chairman.  How  about  the  owners  of  some  of  these  bookmaking 
establishments,  the  big  boys,  the  S.  &  G.  Syndicate  and  the  Ericsons, 
all  those  fellows  that  you  have  seen  on  the  charts  here  ? 

Mr.  HoRTON.  Senator,  they  are  conspicuous  by  their  absence  usually 
in  places  that  you  have  a  warrant  for  search  and  arrest,  and  naturally 
so  because  they  have  their  lieutenants  or  employees  operating  it  and 
it  is  very  difficult  to  find  them. 

The  Chairman.  Do  you  have  a  conspiracy  law  in  the  State  of 
Florida,  conspiracy  to  violate  a  criminal  law  ? 

Mr.  Horton.  Yes,  sir;  we  do. 

The  Chairman.  If  they  put  finances  into  the  operation,  keep  the 
books,  put  up  the  money  for  it,  wouldn't  that  be  a  part  of  the  con- 
spiracy to  violate  the  law  ? 

Mr.  HoRTON.  It  would  be  if  you  could  get  positive  evidence  that 
actually  happens.  Senator. 

The  Chairman.  Well,  you  have  books  and  records. 

Mr.  Horton.  That  is  true,  but  as  Attorney  General  Ervin  pointed 
out  the  attorney  general  would  feel  we  were  exceeding  the  authority 
of  the  local  law  enforcement  officers  unless  requested  by  the  local 
officers. 

The  Chairman.  It  is  not  particularly  our  problem,  but  we  got  a 
whole  truckload  of  books  and  records  back  here.  We  had  no  trouble 
getting  them. 

Mr.  Ervin.  Senator,  you  want  to  know 

The  Chairman,  I  want  to  loiow  why  somebody  hasn't  done  it. 

Mr.  Ervin.  In  the  first  place,  I  don't  have  the  authority  to  prosecute. 
I  can't  come  here  and  take  over  the  prosecution  of  cases.  Probably  I 
might  have  a  duty  to  recommend  and  get  into  it.  Where  we  found 
these  violations  we  brought  everything  in  that  we  obtained  in  the 
raids,  all  the  information  we  got  has  gone  to  the  local  law-enforcement 
officers  for  prosecution. 

They  cooperated  to  the  extent  of  helping  us  on  these  cases  where 
we  got  the  information.  The  local  officers,  that  is,  the  prosecuting 
officials  then  take  this  position:  until  the  case  is  worked  up  by  the 
sheriff  they  have  no  duty  to  do  anything  but  prosecute  once  an  affidavit 
or  a  warrant  has  been  sworn  out. 


ORGANIZED    CRIIME    IN    INTERSTATE    COMMERCE  189 

The  Chairman.  It  wasn't  my  purpose  to  try  to  lecture  anybody 
altout  their  duty.     It  was  just  a  matter  of  our  inquiry. 

Mr.  Gasque.  Senator,  may  I  say  a  word? 

The  Chairman.  Yes,  sir. 

Mr.  Gasque.  The  main  trouble  we  have  is,  for  instance,  we  arrested 
a  notorious  bookmaker  operating  a  gambling  house.  He  had  in  this 
gambling  place  not  only  a  bookmaking  establishment  but  a  roulette 
and  other  such  equipment.  That  was  the  Valhalla  Club  in  Holly- 
wood. We  went  to  trial  in  Fort  Lauderdale,  the  county  seat.  This 
man's  lawyer  goes  in  and  without  informing  the  attorney  general's 
office — we  were  represented  by  Mr.  George  Owen.  Mr.  Toni  and  my- 
self we  were  sitting  out  in  the  hall  under  the  rule  to  be  called  in  as 
a  witness — he  gets  up  and  pleads  nolle  contendre.  The  judge  imme- 
diately fines  him  $500  without  ever  hearing  the  State's  side  or  the 
State's  evidence. 

In  a  lot  of  cases  that  we  got — we  got  some  in  Jacksonville  this  week. 
Mr.  Toni  and  I  raided  a  big  joint  there  where  we  got  the  warrant 
from  the  justice  of  the  peace.  We  stayed  right  with  the  constable 
to  serve  the  warrant  for  fear  they  would  be  tipped  off  before  we  got 
there.  When  we  got  there  we  got  these  three  notorious  bookmakers 
whom  I  have  known  for  30  years  in  Jacksonville.  The  justice  of  the 
peace  made  bond  of  $100  and  it  is  a  felony. 

So,  I  immediately  went  to  the  justice's  office  the  next  morning  and 
explained  to  this  justice  of  the  peace  who  happens  to  be  a  lady  the 
seriousness  of  the  bookie  bill,  that  it  is  a  felony  to  operate  a  book- 
making  joint  and  she  agreed  to  raise  the  bond  to  $500  apiece  which 
is  $1,500  for  the  three  men.  Of  course,  naturally  that  doesn't  help  us 
any  because  that  is  just  a  drop  in  the  bucket  to  them.  They  don't 
mind  a  $500  bond. 

The  biggest  trouble  that  we  have  is  when  we  get  one  and  they  don't 
realize  that  the  law  says  it  is  a  felony  to  operate  a  bookmaking  joint. 
They  fine  them  $100  or  give  them  a  suspended  sentence  or  something 
like  that  and  they  get  away. 

The  Chairman.  Mr.  Gasque,  these  people  skip  their  bond? 

Mr.  Gasque.  In  many  cases  they  do.  I  know  a  case  in  Fort  Laud- 
erdale that  never  came  up  for  trial.  We  never  heard  anything  about 
it.  I  inquired  and  was  told  the  man  forfeited  the  bond  and  the  bond 
was  $100.     That  is  the  cooperation  we  get  trying  to  do  a  good  job. 

The  Chairman.  Mr.  Ervin,  thank  you  very  much  and  thank  you 
Mr.  Toni. 

Mr.  Toni.  Senator,  those  two  names  were  Alfred  M.  Olsen 

The  Chairman.  And  his  address  ? 

Mr.  Toni.  Miami,  and  L.  Oppenheim,  Miami.  Flagler  Hotel  is 
the  address. 

The  Chairman.  And  you  established  that  they  were  employed  by 
the  Continental  Press  Service  of  Chicago  ? 

Mr.  Toni.  That  was  their  statement. 

The  Chairman.  Do  you  have  their  signed  statements  ? 

Mr.  Toni.  No,  sir. 

The  Chairman.  Mr,  Ervin,  we  will  be  very  glad  if  you  will  sit  with 
the  committee  here  and  join  us.     Thank  you  very  much. 

Mr.  Ervin.  I  will  come  back,  Senator. 

The  Chairman,  Mr.  R.  W.  Howden,  please. 


190  ORGANIZED    CRIME    IN   INTERSTATE   COMMERCE 

Mr.  Howden,  do  you  solemnly  swear  that  the  testimony  you  will 
give  the  committee  will  be  the  truth,  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God  ? 

Mr.  HowDEN.  I  do. 

The  Chairman.  The  committee  will  stand  in  recess  for  5  minutes. 

(A  short  recess  was  taken.) 

The  Chaieman.  Mr.  Howden,  will  you  stand  aside  just  a  minute? 
Mr.  Ervin,  will  you  come  back,  please  ? 

Mr.  Ervin,  we  forgot  to  ask  you  what  is  the  law  of  Florida  with 
reference  to  the  amount  allowable  for  campaign  expenditures  for 
candidates  for  various  offices,  that  is.  State  offices. 

Mr.  Ervin.  Senator,  the  law  has  been  repealed  that  set  a  ceiling  on 
the  amounts  that  could  be  expended  by  candidates.  This  repeal  was 
effected  by  the  1949  legislative  session.    However,  there 

The  Chairman.  So,  as  of  now  there  is  no  limit? 

Mr.  Ervin.  There  is  no  limit  on  the  amount  of  expenditures. 

The  Chairman.  But  the  present  law  requires  a  full  listing  of  all 
contributions? 

Mr.  Ervin.  A  full  listing  of  all  contributions. 

The  Chairman.  What  was  the  law  prior  to  the  Legislative  Act  of 
1949  ?    First,  the  law  of  1949  is  not  retroactive  ? 

Mr.  Ervin.  It  is  not  retroactive.  Those  of  us  who  ran  in  1948  we 
are  still  under  that. 

The  Chairman.  Does  the  law  that  you  were  under  apply  to  primary 
campaigns  as  well  as  general  elections  ? 

Mr.  Ervin.  Both. 

The  Chairman.  What  is  the  law  with  reference  to  primary  cam- 
paigns ?    I  mean,  what  was  it  in  1948  ? 

Mr.  Ervin.  You  mean,  the  amount  of  the  limit  ? 

The  Chairman.  Yes. 

Mr.  Ervin.  The  exact  amount  of  that  I  will  get  Mr.  Horton  to  look 
up  for  me.  I  think  it  was  $5,000  for  certain  offices.  I  believe  cabinet 
officials.  As  to  the  Governor  lam  not  sure  whether  it  was  $10,000 
or  $12,000,  but  I  will  get  that  for  you  during  the  course  of  the  after- 
noon. 

The  Chairman.  Did  this  also  recjuire  a  listing  of  contributions? 

Mr.  Ervin.  Yes. 

The  Chairman.  Where  would  they  be  listed  ? 

Mr.  Ervin.  They  would  be  listed  in  the  return  by  the  candidate 
filed  in  the  secretary  of  state  office  in  Tallahassee. 

The  Chairman.  How  come  the  old  law  was  repealed  ?  That  is  re- 
pealed by  the  1949  legislature.  In  other  words,  who  was  the  moving 
spirit  behind  it? 

Mr.  Ervin.  As  I  remember  it,  it  was  a  bill  that  w^as  sponsored  by 
the  house  committee,  I  think,  on  elections  and  the  reason  offered  for 
the  repeal  was  that  everyone  ignored  the  limitation  on  expenditures 
anyway,  they  were  making  liars  out  of  everybody  and  it  was  hypo- 
critical and  tliey  might  as  well  get  rid  of  it. 

The  Chairman.  Who  was  the  sponsor  of  the  bill  in  the  house  and 
in  tlie  senate? 

Mr.  Ervin.  Senator,  I  can  get  that  for  you  in  the  course  of  the 
afternoon.    I  will  have  to  make  a  call  to  get  that.    I  hate  to  guess. 

Tlie  Chairman.  If  you  will  get  it  and  furnish  it  to  the  committee 
I  will  appreciate  it. 


ORGANIZED    CRIME   IN    INTERSTATE    COMMERCE  191 

Mr.  Ervin,  was  there  any  fight  made  in  the  legishiture  against  the 
repeal  of  this  hiw^ 

Mr.  Ervin.  I  don't  think  so.  As  I  recall  it,  there  was  a  unanimous 
^ote  for  the  bill. 

The  Chairman.  Do  you  know  wdiether  it  was  recommended  by  the 
Governor? 

Mr.  Ervin.  I  don't  believe  it  was. 

The  Chairman.  You  don't  know^  one  way  or  the  other  ? 

Mr.  Ervin.  No,  sir;  I  do  not. 

The  Chairman.  Did  tlie  bill  originate  in  the  house  or  in  the  senate? 

Mr.  Ervin.  I  think  it  originated  in  the  house.  I  can  be  mistaken 
about  that,  Senator,  but  I  can  get  that  for  you  by  consulting  the  Jour- 
nal recoi'ds. 

The  Chairman.  Who  is  the  State  oflicer  in  charge  of  the  State  elec- 
tion records  of  contributions? 

Mr.  Ervin.  Hon.  R.  A.  Gray,  secretary  of  state. 

The  Chairman.  Is  he  an  elected  official  ? 

Mr.  Ervin.  Yes,  sir. 

The  Chairman.  Any  questions.  Senator  Hunt? 

Senator  Hunt.  How  long  has  he  been  secretary  of  state? 

Mr.  Ervin.  He  is  going  into  his  twentieth  year. 

TESTIMONY  OF  R.  W.  HOWDEN,  INVESTIGATOR  TOR  EQUITABLE 
LIFE  ASSURANCE  SOCIETY 

The  Chairman.  Thank  you,  Mr.  Ervin.  All  right,  Mr.  How^den, 
will  you  come  up  ? 

Mr.  Halley.  I  remind  you  that  you  have  been  sworn,  Mr.  Howclen. 
What  is  your  address,  Mr.  Howden  ? 

Mr.  Ho^vDEN.  1428  Northwest  Thirty-second  Street. 

Mr.  Halley.  And,  where  are  you  now  employed  ? 

Mr.  Howden.  I  am  employed  as  an  investigator  with  the  Equitable 
Life  Assurance  Society. 

Mr.  Halley.  How  long  have  you  been  employed  there? 

Mr.  Howden.  One  year  on  the  16th  of  June. 

Mr.  Halley.  Where  were  you  employed  between  1945  and  1949  ? 

Mr.  Howden.  Dade  County  sheriff's  office. 

Mr.  Halley.  Under  what  circumstances  did  you  leave  the  Dade 
County  sheriff's  office  ? 

Mr.  Howden.  I  was  dissatisfied  with  the  circumstances  there  and 
had  a  chance  of  a  better  position. 

Mr.  Halley.  Was  that  better  position  the  one  with  the  Equitable 
Life  Assurance  Society? 

Mr.  HowT)EN.  Yes,  sir. 

Mr.  Halley.  What  positions  did  you  hold  on  the  staff  of  the  Dade 
County  sheriff's  office  ? 

Mr.  Howden.  I  was  in  charge  of  the  identification  bureau  from  1945 
to  1947  and  then  I  was  assistant  homicide  investigator. 

Mr.  Halley.  In  1949  were  you  considering  an  offer  of  a  job  of  chief 
of  police  some  place? 

Mr.  Howden.  Yes,  sir. 

Mr.  Halley.  Where  was  that  place  ? 

Mr.  Howden.  At  Opa  Locka,  Fla. 

Mr.  Halley,  In  what  county  is  that  ? 


192  ORGANIZED    CRIME    IN   INTERSTATE   CSO'MMERCE 

Mr,  HowDEN.  That  is  in  Dade  County. 

Mr.  Halley.  Before  going  into  that  matter  any  further  would  you 
state  who  was  the  sheriff  under  whom  you  served  ? 

Mr.  HowDEN.  Sheriff  Jimmy  Sullivan. 

Mr.  Halley.  Was  there  a  man  in  the  sheriff's  office  named  Tom 
Burk? 

Mr.  HowDEN.  Yes,  sir. 

Mr.  Halley.  What  position  did  Tom  Burk  hold  ? 

Mr.  Howden.  He  was  a  deputy. 

Mr.  Halley.  Deputy  sheriff? 

Mr.  Howden.  Yes,  sir. 

Mr.  Halley.  Was  he  in  charge  of  any  particular  type  of  work  ? 

Mr.  HowDEX.  His  particular  work  was  on  the  raiding  scj[uad  or 
gambling  squad. 

Mr.  Halley.  In  1949  when  you  were  considering  taking  the  job  of 
chief  of  police  on  the  Opa  Locka  force  at  Opa  Locka  did  you  have  a 
conversation  about  that  matter  with  Mr.  Burk  ? 

Mr.  HowDEN.  Yes,  sir;  I  did. 

Mr.  Halley.  Would  you  state  the  conversation  as  fully  as  you  can 
recall  ? 

Mr,  HowDEX.  One  morning — I  was  supposed  to  take  the  position 
on  the  15th  of  June  and  I  had  submitted  my  resignation — It  was 
about  2  weeks  prior  to  my  leaving  that  it  had  been  submitted  to  th© 
office — Mr.  Burk  called  me  aside  and  told  me  that  if  I  was  going  to 
take  a  job  out  at  Opa  Locka  he  told  me  a  man  to  see  and  if  I  saw  this 
man  he  would  take  care  of  any  situation  that  might  come  up  there  as 
far  as  the  gambling  situation  or  any  pa^^offs  might  be  concerned. 

Mr.  Halley.  Can  you  be  more  specific?  Did  he  tell  you  that  this 
man  was  to  see  to  it  that  you  got  a  cut  of  the  gambling  at  Opa  Locka  ? 

Mr.  HowDEN,  Yes,  sir ;  he  did, 

Mr.  Halley.  Was  there  any  further  conversation  with  Mr.  Burk  at 
that  time  ? 

Mr.  HowDEN.  At  that  time  he  told  me  that  was  the  man  I  should 
see  and  I  just  left  it  there.     I  didn't  care  anything  about  it. 

Mr.  Halley.  Who  was  the  man  who  was  mentioned  to  you? 

Mr.  HowDEN.  I  was  supposed  to  see  a  Mr.  Red  Rainwater. 

Mr.  Halley,  Can  you  identify  Mr.  Rainwater  ? 

Mr.  Howden.  I  don't  know  him  personally.  I  wouldn't  know  him 
if  I  would  see  him. 

Mr.  Halley.  Did  you  sometime  thereafter  have  a  conversation  with 
a  man  named  George  Proskoff? 

Mr.  HowDEN.  Yes,  sir. 

The  Chairman.  Who  is  George  Proskoff? 

Mr.  Halley.  The  chairman  would  like  to  know  who  is  George 
Proskoff. 

Mr.  HowDEN.  He  is  a  deputy  constable. 

Mr.  Halley.  Where? 

Mr.  HowDEN.  In  the  first  district,  Dade  County. 

Mr.  Halley.  Would  you  state  the  conversation  that  you  had  with 
Mr.  Proskoff? 

Mr.  HowDEN.  I  received  a  telephone  call— I  think  it  was  the  same 
day  that  I  talked  to  Mr.  Burk.  It  Avas  that  evening — at  home  and 
Mr.  Proskoff  told  me  that  he  had  $200  for  me  to  take  a  vacation  before 


ORGANIZED   CHIME   IN   INTERSTATE    COMMERCIE  193 

I  went  to  Opa  Locka.  I  asked  liim  what  it  was  for  and  he  said  that 
Ked  Rainwater  had  sent  it  for  me. 

I  told  him  I  wasn't  interested  in  anything:  that  he  had  and  if  I 
did  take  the  position  as  chief  of  police  at  Opa  Locka  they  would  know 
that  I  was  the  chief. 

Mr.  Hallet.  Did  you  ever  take  the  position  of  chief  of  police  at 
Opa  Locka  ? 

Mr.  How^DEN.  No,  sir.  Before  the  time  for  me  to  go  out  there  came 
up  I  took  this  position  that  I  now  have. 

Mr.  Halley.  Did  you  have  any  further  conversations  concerning 
the  position  of  chief  of  police  at  Opa  Locka  with  Burk  or  Proskoff 
or  Rainwater  ? 

Mr.  Howden.  None  after  that.  I  had  no  conversations  with  Rain- 
water whatsoever. 

Mr.  Halley.  When  did  yon  last  talk  to  this  Tom  Burk? 

Mr.  HoAVDEN.  About  2  or  3  weeks  ago,  about  2  weeks  ago. 

Mr.  Halley.  Where  did  you  see  him  ? 

Mr.  Howden.  Down  near  the  courthouse. 

Mr.  Halley.  On  the  street  ? 

Mr.  Howden.  Yes,  sir. 

Mr.  Halley.  And,  did  you  have  a  conversation  wdth  him  ? 

Mr.  How^den.  I  had  a  sort  conversation  with  him  at  that  time. 

Mr.  Halley.  Would  you  state  that  conversation  tjo  the  committee? 

Mr.  Howden.  I  met  Mr.  Burk  on  the  street.  I  hadn't  seen  him  for 
some  months.  I  asked  him  how  he  was  getting  along  and  I  asked  him 
what  he  thought  about  the  situation  developing  in  the  courthouse. 
We  had  a  few  words  and  he  told  me  that  he  wasn't  mad  at  the  boss, 
meaning  Sheriff  Sullivan,  and  that  his  main  complaint  was  that  the 
sheriff's  wife  had  accused  him  of  going  around  with  large  sums  of 
money  in  his  pockets  on  the  streets  and  he  said  that  they  didn't  have 
anything  on  him,  that  he  had  turned  over  to  her  amounts  of  $7,000, 
$8,000,  $10,000,  and  $11,000  at  a  time;  that  he  had  signed  receipts 
for  that  money. 

Mr.  Halley.  Was  he  talking  about  money  in  cash  ? 

Mr.  Howden.  Yes,  sir. 

Mr.  Halley.  And,  did  he  state  that  he  had  receipts  signed  by  Mrs. 
Sullivan,  Mrs.  Jimmy  Sullivan  ? 

Mr.  Howden.  Yes,  sir. 

Mr.  Halley.  Was  there  any  further  conversation  at  that  time  ? 

Mr.  Howden.  No.   We  just  passed  the  time  of  day  and  I  left. 

Mr.  Halley.  Did  you  at  any  other  time  have  conversations  with 
Mr.  Tom  Burk  about  pay-off  money  ? 

Mr.  Howden.  One  afternoon  leaving  the  courthouse  I  believe  Mr. 
Burk  was  quite  upset.  The  sheriff',  as  I  understand  it,  had  called  him 
in  and  reprimanded  him  about  a  new  automobile  that  he  had  bought 
and  in  getting  on  the  elevator  I  made  a  remark  that  he  better  be  careful 
or  the  crime  commission  would  get  after  him  and  he  said  that  he  didn't 
give  a  damn  about  the  crime  commission,  that  he  made  his  and  that  he 
had  taken  care  of  the  man  with  the  whiskers  and  the  rest  of  them 
could  all  go  to  the  devil. 

Mr.  Halley.  Did  he  ever  in  so  many  words  admit  that  he  was  "in 
on  the  take"  ? 

Mr.  Howden.  In  so  many  words ;  yes. 


194  ORGANIZED    CHIME    IN    EVTERSTATE    COMMERCE 

Mr.  Halley.  And  it  was  understood  between  you  that  being  "in 
on  the  take"  meant  receiving  bribe  money  from  gamblers,  is  that  cor- 
rect? 

Mr.  HowDEN.  I  think  that  was  pretty  general  knowledge  around 
the  courthouse. 

Mr.  Halley.  Is  there  anything  else  on  the  subject  of  bribe  money 
or  about  the  sheriff's  office  which  you  want  to  tell  to  the  committee? 

Mr.  HowDEN.  No,  sir. 

Mr.  Halley.  You  were  brought  here  pursuant  to  a  subpena,  is  that 
correct  ? 

Mr.  HowDEN.  Yes.  sir. 

Mr.  Halley.  You  did  not  volunteer  to  testify  ? 

Mr.  HowDEN.  No,  sir. 

Mr.  Halley.  You  have  been  offered  no  inducement  of  any  kind 
whatsoever  to  testify,  have  you  ? 

Mr.  HowDEN.  No,  sir. 

Mr.  Halley.  I  have  no  further  questions,  Mr.  Chairman. 

The  Chairman.  Mr.  Howden,  where  is  Opa  Locka? 

Mr.  HowDEN.  It  is  located,  I  believe,  about  18  miles  from  the  court- 
house.   It  is  j  ust  north  of  the  Miami  Naval  Air  Station. 

The  Chairman.  Is  it  in  Dade  County  ? 

Mr.  HowDEN.  Yes,  sir. 

The  Chairman.  How  large  a  town  is  it  ? 

Mr.  HowDEN.  It  has  a  population  according  to  the  last  census,  I 
believe,  of  about  8,000. 

The  Chairman.  Who  is  Red  Rainwater? 

Mr.  HowDEN.  He  is  a  local  gambler.  I  believe  he  is  interested  in 
numbers  and  some  slot  machines. 

The  Chairman.  Does  he  have  that  reputation  and  is  he  well  known 
as  a  gambler  ? 

Mr.  HowDEN.  Yes,  sir. 

The  Chairman.  Any  questions.  Senator  Hunt  ? 

Senator  Hunt.  No. 

The  Chairman.  Thank  you,  Mr.  Howden.    Now,  is  Mr.  Burk  here? 

TESTIMONY  OF  THOMAS  G.  BURK,  DEPUTY  SHERIET, 
DADE  COUNTY,  FLA. 

Mr.  Burk.  Here. 

The  Chairman.  Mr.  Burk,  do  you  solemnly  swear  that  the  testi- 
mony you  will  give  this  committee  will  be  the  truth,  the  whole  truth 
and  nothing  but  the  truth,  so  help  you  God  ? 

Mr.  Burk.  I  do.     Yes,  sir. 

The  Chairman.  Now,  Mr.  Burk,  you  have  been  subpenaed  to  come 
here  and  testifv,  is  that  correct? 

Mr.  Burk.  That  is  correct. 

The  Chairman.  You,  of  course,  understand  that  you  are  under 
oath  in  giving  this  testimony? 

Mr.  Burk.  Yes,  sir. 

The  Chairman.  All  right,  Mr.  Halley. 

Mr.  Halley.  Did  you  hear  the  testimony  of  the  last  witness  ? 

Mr.  BuiiK.  I  did,  sir. 

Mr.  HaTvLey.  Plis  name  is  R.  W.  Howden,  is  that  right  ? 

Mr.  Burk.  Correct. 


ORGANIZED   CRIME'  IN   INTERSTATE    COMMERGE  195 

Mr.  Halley.  Do  you  know  the  last  witness? 

Mr.  BuRK.  Only  by  working  with  him. 

Mr.  Halley.  Did  you  work  with  him  in  the  sheriff's  office  ? 

Mr.  BuRK.  We  worked  there  in  the  same  department. 

]VIr.  Halley.  What  department  was  that? 

Mr.  BuRK.  The  criminal  department  in  the  sheriff's  office  of  Dade 
County,  State  of  Florida. 

Mr.  Halley.  Was  he  attached  to  your  gambling  squad  ? 

Mr.  BuRK.  Now  and  then  he  would  go  out ;  yes,  sir, 

Mr.  Halley.  Was  that  his  principal  duty  ? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  What  is  your  principal  duty  in  the  sheriff's  oiBce  ^ 

Mr.  BuRK.  I  took  care  of  the  criminal  court  of  record,  the  bail  in 
tlie  court,  served  papers  and  in  the  meantime  went  out  and  made 
pinches  of  operating  gambling  houses. 

Mr.  Halley.  Do  you  desire  to  comment  on  the  testimony  of  the  last 
witness? 

Mr.  BuRK.  Say  that  again,  please. 

Mr.  Halley.  Do  you  desire  to  comment  on  the  testimony  of  Mr. 
Howden  ? 

Mr.  BuRK.  In  other  words,  it  is  false. 

Mr.  Halley.  Did  you  have  a  conversation  of  any  kind  with  Mr. 
Howden  about  2  weeks  ago? 

Mr.  BuRK.  I  did. 

Mr.  Halley.  Did  you  meet  him  on  the  street? 

i\Ir.  BuRK.  I  did. 

Mr.  Halley.  In  the  vicinity  of  the  courthouse  ? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  Would  you  state  what  the  conversation  was  between 
j  you  and  Mr.  Howden  ? 

Mr.  BuRK.  What  I  said,  you  mean  ? 

Mr.  Halley.  Yes ;  and  what  he  said. 

Mr.  BuRK.  We  met  at  a  parking  lot  on  Northwest  First  Street  just 
west  of  tlie  railroad  tracks.  He  said,  "How  are  you  doing,  Mate  T' 
I  said,  "I  am  doing  all  right."  He  said,  "How  are  you  getting  along 
on  the  farm?"  and  I  said,  "Fine."  I  said,  "What  are  you  doing?"' 
and  he  said  something  about  still  working  for  the  insurance  peoi)le. 

He  said,  "What  do  you  know,  I  have  seen  George  the  Greek." 
(ieorge  the  Greek  had  been  working  in  the  sheriff's  office  upstairs  in 
tlio  criminal  department.  I  said,  "What  is  the  matter  with  him," 
i  and  he  said,  "I  was  talking  with  him  and  and  was  kidding  with  him." 
!  Now,  this  boy  that  was  here  he  said  he  was  kidding  with  George  the 
Greek.  He  said,  "George,  how  are  you  feeling?"  and  he  said,  "I  am 
doing  all  right."  He  says,  "You  know  they  got  something  on  you." 
and  he  said,  "I  ain't  giving  a  God  damn  what  they  got  on  me." 

That  is  what  Dick  Howden  told  me. 

Mr.  Halley.  What  did  you  have  in  mind,  both  have  in  mind? 

Mr.  BuRK.  I  didn't  ask.  I  was  subpenaed  to  come  to  court  that 
morning  and  didn't  have  much  time. 

Mr.  Halley.  You  have  no  idea  what  anybody  might  hare  on 
'  Howden  ? 

Mr.  BuRK.  No,  sir. 


196  ORGANIZED    ORIIME    IN   INTERSTATE    COMMERCE 

Mr.  Halley.  Is  it  true  that  you  have,  as  alleged  by  Mr.  Howden, 
given  large  sums  of  money  in  cash  in  amounts  of  $7,000,  $8,000, 
$10,000,  and  $11,000  to  Mrs.  Jimmy  Sullivan? 

Mr.  BuEK.  That  is  false. 

Mr.  Halley.  Have  you  ever  given  any  sums  of  money  in  cash  to 
Mrs.  Jimmy  Sullivan  ? 

Mr.  BuEK.  No,  sir.    That  is  false. 

Mr.  Halley.  Have  you  ever  given  any  sums  of  money  to  Jimmy 
Sullivan,  the  sheriff? 

Mr.  BuRK.  No,  sir ;  that  is  false. 

Mr.  Halley.  Did  you  in  1949  have  a  conversation  with  Mr.  How- 
den about  his  taking  the  job  of  chief  of  police  at  Opa  Locka? 

Mr.  BuRK.  A  few  words ;  yes,  sir.  He  told  me.  He  said,  "Tom,  I 
got  a  break.  I  believe  I  am  going  out  to  Opa  Locka  as  chief  of  police." 
I  said,  "That  is  a  nice  community.    Why  don't  you  go  out  there?" 

Mr.  Halley.  And  during  that  conversation  was  a  man  named  Red 
Rainwater  mentioned  at  all  ? 

Mr.  BuRK.  Not  by  Tom  Burk. 

Mr.  Halley.  Was  he  mentioned  by  R.  W.  Howden  ? 

Mr.  Burk.  No,  sir. 

Mr.  Halley.  Have  you  ever  read  about  him  in  the  newspapers  ? 

Mr.  Burk.  Yes,  sir. 

Mr.  Halley.  Do  you  know  who  he  is  ? 

Mr.  Burk.  I  could  pick  him  out  of  a  crowd;  yes,  sir. 

Mr.  Halley.  You  could  pick  him  out  of  a  crowd? 

Mr.  Burk.  Yes,  sir.    I  arrested  him  twice  operating 

Mr.  Halley.  Was  it  an  error  when  the  first  time  I  asked  you  whether 
you  heard  of  Red  Rainwater  and  you  said,  "No,  sir"? 

Mr.  Burk.  There  is  two  of  them. 

Mr.  Halley.  Wliich  one  of  them  haven't  you  heard  of? 

Mr.  Burk.  One  is  a  lawyer  here  and  one  is  operating  book. 

Mr.  Halley.  If  you  know  of  the  two  of  them  how  could  you  not 
have  heard  of  either  one  of  them  ? 

Mr.  Burk.  One  I  don't  know. 

Mr.  Halley.  Do  you  remember  having  told  Howden  that  you  would 
fix  him  up  with  a  cut  of  the  gambling  in  Opa  Locka  ? 

Mr.  Burk.  No,  sir. 

Mr.  Halley.  You  never  told  him  anything  like  that  ? 

Mr.  Burk.  No,  sir. 

Mr.  Halley.  What  is  Red  Rainwater's  business  in  Opa  Locka? 

Mr.  Burk.  I  wouldn't  know,  sir. 

Mr.  Halley.  Is  he  in  the  gambling  business  ? 

Mr.  Burk.  I  wouldn't  know,  sir. 

Mr.  Halley.  You  have  no  idea  ? 

Mr.  Burk.  No,  sir. 

Mr.  Halley.  Even  by  reputation  ? 

Mr.  Burk.  No,  sir. 

Mr.  Halley.  You  arrested  him  twice  ? 

Mr.  Burk.  Not  in  Opa  Locka;  the  city  of  Miami. 

Mr.  Halley.  Wliat  did  you  arrest  him  in  Miami  for  ? 

Mr.  Burk.  Operating  a  gambling  house. 

Mr.  Halley.  "VVliat  is  his  business  in  Miami  ? 

Mr.  Burk.  I  believe  he  is  in  the  business  of  chartering  books. 

Mr.  Halley.  Does  he  do  any  gambling  business  ? 


ORGANIZED   CRIIME    IN   INTERSTATE   COMMERCE  197 

Mr.  BuRK.  When  I  seen  liini  he  was  and  I  picked  him  up. 

Mr.  Halley.  You  saw  him  gambling? 

Mr.  BuRK.  I  didn't  see  him  gambling,  but  I  took  his  place  and  took 
him. 

Mr.  Halley.  And  you  saw  him  operating  a  gambling  establishment 
on  two  occasions? 

Mr.  BuRK.  No,  sir ;  on  one  occasion.     I  lost  one  case  with  him. 

Mr.  Halley.  In  the  other  case  he  was  convicted  ? 

Mr.  BuRK.  Correct. 

Mr.  Halley.  Did  you  ever  tell  anybody  that  you  were  "in  on  the 
take*'? 

Mr.  BuRK.  Take  of  what? 

Mr.  Halley.  Take  a  bribe  ? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  When  did  you  enter  the  sheriff's  office? 

Mr.  BuRK.  On  January  1,  1944. 

Mr.  Halley.  What  had  you  been  doing  previously? 

Mr.  BuRK.  Since  August  1,  1949, 1  went  on  a  farm. 

Mr.  Halley.  You  quit  the  sheriff's  office  in  1949;  is  that  right? 

Mr.  BuRK.  Correct. 

Mr.  Halley.  Did  you  purchase  that  farm? 

Mr.  BuRK.  Yes,  sir;  with  mortgages. 

Mr,  Halley.  What  was  the  purchase  price  of  the  farm  ? 

Mr.  BuRK.  $26,700— $26,725. 

Mr.  Halley.  How  much  of  that  did  you  pay  in  cash? 

Mr.  BuRK.  $1,000  and  $4,000,  $5,000.     There  was  a  $10,750  moi-t 
gage  on  it  and  I  paid  $1,000  and  $4,000.     I  paid  $26,750. 

Mr.  Halley.  You  paid  $26,750 

Mr.  BuRK.  For  the  place  and  it  is  mortgaged. 

Mr.  Halley.  How  much  of  that  did  you  pay  in  cash  ? 

Mr.  BuRK.  $5,000. 

Mr.  Halley.  $5,000? 

Mr.  BuRK.  That  is  correct. 

Mr.  Halley.  Do  you  operate  that  as  a  farm  ? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  You  are  retired,  in  other  words? 

Mr.  BuRK.  You  can  call  it  that,  but  I  am  up  to  my  knees  in 
mortgages. 

Mr.  Halley.  Do  you  own  them  or  are  you  the  debtor  on  these 
mortgages  ? 

Mr.  BuRK.  I  have  a  home  mortgage  and  I  still  owe  $15,000  and 
something  on  the  place  yet.     I  pay  rent ;  you  know  what  I  mean. 

Mr.  Halley.  But  you  don't  work  for  a  living  anymore? 

Mr.  BuRK.  I  work  in  the  grove,  yes ;  planting  tomatoes,  pears,  and 
mangoes.    Sure,  I  work. 

Mr.  Halley.  Did  you  have  a  farm  before  you  went  into  the  sheriff's 
office? 

Mr.  BuRK.  I  was  a  nurserj'  man. 

Mr.  Halley.  For  how  many  years? 

Mr.  Bltrk.  Oh,  maybe  about  seven  or  eight. 

Mr.  Halley.  During  what  period  ? 

Mr.  BuRK.  Oh,  say  1900. 

Mr.   Halley.  And   between   around   1900   and  1949   you   did   no 
farminjr? 


198  lORG'ANIZED    CRIME    IJST    INTE'RSTATE    COMMERCE 

Mr.  BuRK.  No,  sir ;  only  around  the  house. 

Mr.  Halley.  You  don't  maintain  that  you  are  operating  this  farm 
to  earn  a  living  now,  do  you? 
Mr.  BuRK.  I  do. 

Mr.  Hali.ey.  What  is  the  amount  of  money  you  earned  on  this  farm 
in  the  last  year  ? 

Mr.  BuRK.  In  the  year  1949  I  paid  the  internal  revenue,  $1,069, 
Mr.  Halley.  Tax? 
Mr.  BuRK.  Income  tax. 

Mr.  Halley.  Was  that  income  from  the  farm  ? 
Mr.  BuRK.  Yes,  sir — not  all  from  the  farm ;  no,  sir. 
Mr.  Halley.  What  was  the  remainder  of  that  income  ? 
Mr.  BuRK.  The  remainder  of  the  income  I  think — close  to  $5,000  I 
took  from  the  farm  and  I  got  about  $4,100  that  I  put  extra  miscella- 
neous gambling. 

Mr.  Halley.  What  kind  of  gambling  was  that? 
Mr.  BuRK.  At  the  Hialeah  Race  Track. 

Mr.  Halley.  You  mean,  you  just  went  in  and  won  $1,000  on  mis- 
cellaneous bets? 

Mr.  BuRK.  That  is  correct.     In  the  last  week  in  the  month  of  Janu- 
ary I  had  some  warrants  in  my  hands  to  execute  them.     I  went  to  the 
Hialeah  track,  met  a  couple  of  the  boys  and  made  a  bet  and  collected. 
Mr.  Halley.  Was  that  a  single  bet  ? 
Mr.  BuRK.  It  wasn't  what  you  call  a  big  bet ;  no. 
Mr,  Halley.  What  did  you  make  on  the  one  bet  ? 
Mr.  BuRK.  I  got  about  $2,600  on  the  first  bet  and  collected  my  man 
and  brought  him  back, 

Mr.  Halley.  Did  you  make  any  more  income  on  bets  at  the  race 
track  ? 

Mr.  BuRK.  Yes,  sir. 
Mr.  Halley.  How  much  ? 
Mr.  BuRK,  About  $4,100. 
Mr.  Halley.  About  $4,100  ? 
Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  These  were  bets  you  made  in  cash  Avith  the  mutuel 
machine  ? 

Mr.  BuRK,  Yes,  sir. 

Mr.  Halley.  And  you  declared  those  profits  on  your  income-tax 
returns  ? 
Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  Are  you  sure  you  weren't  paying  income  on  some  cash 
you  got  in  some  other  way  ? 
Mr.  BuRK.  No,  sir. 

Mr.  Halley,  Did  you  hear  Mr,  Howden  testify  that  j^ou  had  stated 
to  him  that  you  took  care  of  Uncle  Sam  ? 

Mr.  BuRK.  Yes — I  don't  quite  understand  what  he  meant  by  that. 
Mr.  Halley.  Well,  I  believe  he  explained  he  meant  that  you  paid 
your  income  tax  on  whatever  cash  you  took. 
Mr.  BuRK,  Those  words  were  never  used. 

Mr.  Halley.  But  you  did  take  care  of  Uncle  Sam  on  this  ffambline 
profit? 

Mr.  BuRK.  If  you  want  to  say  1  took  care  of  Uncle  Sam,  I  did.     I 
paid  my  income  tax.     Is  that  what  you  mean? 


ORGANIZED    CRIME.    IN    INTERSTATE    COMMERCE  199 

Mr.  Halley.  It  is  not  customary  among  people  you  know  to  declare 
on  race-track  profits. 

Mr.  BuKK.  He  asked  me,  "Did  you  make  any  money?"  and  I  said, 
"Yes." 

Mr.  Halley.  Have  you  in  previous  years  declared  winnings  on 
horse  races? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  Just  this  year? 

Mr.  BuRK.  Well,  in  1948  and  1947. 

Mr.  Halley.  You  also  declared  race-track  winnings? 

Mr.  BuRK.  A  few  dollars ;  yes,  sir. 

Mr.  Halley.  Well,  how  much  ? 

Mr.  BuRK.  Maybe  about  $900,  $400. 

Mr.  Halley.  In  any  other  years  did  you  declare  race-track  win- 
nings? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  What  was  the  horse  you  won  $2,600  on  ? 

Mr.  BuRK,  I  wouldn't  know  the  horse's  jiame.     You  go  by  numbers.; 

Mr.  Halley.  You  have  no  idea  of  the  horse's  name? 

Mr.  Burke.  Three  or  four  horses. 

Mr.  Halley.  Do  you  remember  the  name  of  the  jockey  who  made 
that  money  for  you  ? 

Mr.  Burk.  No,  sir. 

Mr.  Halley.  Just  a  complete  blank? 

Mr.  Burk.  Yes,  sir. 

Mr.  Hali>ey.  How  often  have  you  won  $2,600  on  horse  racmg? 

Mr.  Burk.  The  first  time. 

Mr.  Halley.  Never  before  in  your  life  ? 

Mr.  Burk.  No,  sir.  In  fact,  I  was  never  much  on  playing  the 
horses. 

Mr.  Halley.  Do  you  OAvn  any  other  property  in  addition  to  the 
farm  you  described? 

Mr.  Burk.  Yes,  sir. 

Mr.  Halley.  Will  you  state  what  it  is  ? 

Mr.  Burk.  The  home. 

Mr.  Halley.  Where  is  that  ? 

]Mr.  Burk.  It  is  located  at  2497  Twenty-first  Terrace,  city  of  Miamiy 
Dade  County. 

Mr.  Halley.  When  did  you  purchase  the  home? 

Mr.  Burk.  In  1946. 

Mr.  Halley.  That  was  the  year  after  you  went  to  the  sheriff's^ 
office. 

Mr.  Burk.  That  was  2  years. 

Mr.  Halley.  Two  years  after? 

^Ir.  Burk.  Yes. 

Mr.  Halley.  What  did  3'ou  pay  for  that  home? 

Mr.  Burk.  I  paid  $8,00()  down' for  the  home. 

Mr.  Halley.  You  put  down  $8,000  in  cash  ? 

Mr.  Burk.  Correct ;  cash. 

Mr.  Halley.  What  did  the  liome  cost? 

Mr.  Burk.  $11,000. 

Mr.  Halley.  You  paid  $8,000  of  the  $11,000  in  cash  ? 

Mr.  Burk.  That  is  right. 

68958 — 50 — pt.  1 14 


200  ORGANIZED    CRIME    IN   INTERSTATE    COOVIMERCE 

Mr.  Hallet.  Do  you  own  any  other  property  ? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  None  whatsoever? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  Are  you  married  ? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  Does  your  wife  own  any  property  ? 

Mr.  BuEK.  No,  sir. 

Mr.  Halley.  Do  you  have  any  children  ? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  Do  you  have  any  bank  accounts  ? 

Mr.  BuRK.  In  the  year  1949 ;  yes,  sir. 

Mr.  Halley.  How  much  did  you  have  in  the  bank  at  the  beginning 
of  1949? 

Mr.  Btjrk.  Nothing. 

JNIr.  Halley.  Nothing? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  Will  you  state  to  the  committee  how  much  you  had  in 
the  bank  during  any  time  in  1949?     What  is  the  maximum  amount? 

Mr.  BuRK.  I  don't  think  I  put  any  money  in  the  bank  until  August ; 
probably  $3,000. 

Mr.  Halley.  Where  did  you  get  that  $3,000. 

Mr.  BuRK.  That  came  from  checks  from  the  grove. 

Mr.  Halley.  From  the  grove  ? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  From  the  sale  of  fruit  ? 

Mr.  BuRK.  That  is  correct. 

Mr.  Halley.  And  you  put  that  in  the  bank? 

Mr.  BuRK.  Regular  channels ;  yes,  sir. 

Mr.  Halley.  Up  to  that  point  did  you  have  a  bank  account  ? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  How  did  you  pay  for  the  house  when  you  paid  $8,000 
down? 

Mr.  BuRK.  I  have  been  in  the  city  of  Miami,  Dade  County,  for  30 
years  and  never  was  out  of  employment.  I  made  a  few  dollars  and 
that  was  my  savings. 

Mr.  Halley.  Where  did  you  keep  your  savings,  in  a  shoe  ? 

Mr.  BuRK.  In  the  house. 

Mr.  Halley.  In  a  box  ? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  A  tin  box  ? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  Where  did  you  keep  the  $8,000  ? 

Mr.  BuRK.  In  the  house. 

Mr.  Halley.  And  where  did  you  keep  the  $5,000  that  you  used  to 
buy  the  farm  ? 

Mr.  BuRK.  I  didn't  make  that  until  1949. 

Mr.  Halley.  How  did  you  make  that  $5,000  ? 

Mr.  BuRK.  One  thousand  dollars  I  had  from  the  race  track  and 
then  I  got  a  note  for  $4,000  which  is  pending  yet.     That  was  $5,000. 

Mr.  Halley.  How  did  you  get  the  note  for  $4,000  ? 

Mr.  BuRK.  I  got  a  note. 

Mr.  Halley.  How  did  you  get  a  note  ? 

Mr.  BuRK.  M}' 


ORGANIZED   CRIIME    IN   INTBRSTAT'E   OOMMEROE  201 

Mr.  Halley.  Will  you  describe  that  transaction  ? 

Mr.  BuKK.  My  sister-in-law. 

Mr.  Halley.  Your  sister-in-law  ? 

Mr.  BuRK.  That  is  right. 

Mr.  Halley.  You  mean,  she  loaned  you  $4,000  ? 

Mr.  BuKK.  Yes,  sir. 

Mr.  Halley.  That  was  not  your  money  ? 

Mr.  BuRK.  No,  sir.     That  was  to  bargain  to  sell  the  other  house. 

Mr.  Halley.  Did  you  ever  sell  the  other  house  ? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  Has  your  sister-in-law  asked 

Mr.  BuRK.  It  was  mortgaged. 

Mr.  Halley.  Has  your  sister-in-law  asked  you  for  the  money? 

Mr.  BuRK.  No ;  she  hasn't  asked  yet.     I  paid  her  $500  back  already. 

Mr.  Halley.  By  check? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  I  thought  you  had  no  checking  account  ? 

Mr.  BuRK.  That  came  after  August  1. 

Mr.  Halley.  You  opened  a  checking  account  with  the  profits  of  the 
farm? 

Mr.  Btjrk.  Later  in  August,  yes,  sir,  in  1949. 

Mr.  Halley.  What  made  you  decide  after  you  had  the  farm  to  put 
trust  in  banks  ? 

Mr.  BuRK.  It  was  all  checks  and  I  couldn't  handle  it. 

Mr.  Halley.  You  mean,  the  money  you  got  before  1949  was  cash? 

Mr.  BuRK.  I  didn't  start  in  1949.  It  was  in  August  1949  when  I 
started  putting  it  in  the  bank. 

Mr.  Halley.  That  was  because  you  got  checks  ? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  Are  we  to  assume  that  the  $8,000  you  accumulated  to 
buy  your  house  in  1946  you  got  in  cash  ? 

Mr.  BtJRK.  That  was  in  cash.     That  was  my  savings,  yes,  sir. 

Mr.  Halley.  Wliat  was  your  salary  as  a  deputy  sheriff? 

Mr.  BuRK.  When  I  first  went  to  work  I  think  it  was  $300  and  when 
I  finished  it  was  $350. 

Mr.  Halley.  $300  a  month  ? 

Mr.  BuRK.  I  think  when  I  finished  it  was  $350. 

Mr.  Halley.  You  say  you  became  a  deputy  sheriff  in  1944? 

Mr.  BuRK.  First  day  of  January,  1944. 

Mr.  Halley.  What  was  your  occupation  prior  to  January  1944  ? 

Mr.  BuRK.  I  was  manager  of  the  Police  Benevolent  Association  of 
the  City  of  Miami,  Dade  County. 

Mr.  Halley.  What  was  your  rate  of  compensation  in  that  job? 

Mr.  BuRK.  I  don't  know. 

Mr.  Halley.  Was  it  more  than  $50  a  week? 

Mr.  BuRK.  I  don't  know. 

Mr.  Halley.  Was  it  more  than  $40  a  week? 

Mr.  BuRK.  I  don't  know. 

Mr.  Halley.  Was  it  more  than  $30  a  week  ? 

Mr.  BuRK.  You  mean  the  wages  ? 

Mr.  Halley.  Yes. 

Mr.  BuRK.  It  was  $35. 

Mr.  Halley.  Thirty-five  dollars  a  week? 

Mr.  BuRK.  Yes. 


202  ORGANIZED   CRIME    IN   IN^TERSTATE    COMMERCE 

Mr.  Halley.  How  long  did  it  take  you  to  save  that  $8,000  in  cash? 

Mr.  Burke.  Oh,  about  18  to  20  years. 

Mr.  Halley.  All  that  time  you  kept  that  money  in  a  box  in  your 
house  ? 

Mr.  Burke.  Yes,  sir. 

Mr.  Halley.  And  then  a  vear  after  vou  became  deputy  sheriff  you 
bought  a  house  for  $8,000 — - 

Mr.  Burke.  That  is  correct. 

Mr.  Halley.  In  cash? 

Mr.  BuRK.  Tlie  Avar  broke  loose  and  the  wife  and  I  got  together  and 
we  thought  we  better  get  something  now.  I  thought  I  had  a  decent 
job  to  carry  on. 

Mr.  Halley.  Do  you  know  a  Mr.  Crosby  ?     Tom  Crosby. 

Mr.  BuRK.  I  know  a  Bill  Crosby. 

Mr.  Halley.  You  know  a  Bill  Crosb}^? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  Wlio  is  he  ? 

Mr.  BuRK.  I  think  I  was  introduced  to  Bill  Crosby  one  day  in  the 
sheriff's  office  up  on  the  nineteenth  floor  in  the  county  courthouse  as  an 
investigator  for  the  Governor  of  the  State  of  Florida. 

Mr.  Halley.  In  what  year? 

Mr.  Burke.  In  1948. 

Mr.  Halley.  In  1948? 

Mr.  BuRK.  1948. 

Mr.  Halley.  Could  it  have  been  1949? 

Mr.  BuRK.  It  might  have  been  1949,  the  first  G  months,  tliat  is  right. 

Mr.  Halley.  It  was  the  early  part  of  1949? 

Mr.  BuRK.  The  early  part  of  1949. 

Mr.  Halley.  About  January? 

Mr.  BuRK.  That  is  right. 

Mr.  Halley.  Right  after  Governor  Warren  was  elected? 

Mr.  Bltrk.  That  is  correct ;  I  am  sorry. 

Mr.  Halley.  Practically  immediately  afterward? 

Mr.  BuRK.  That  is  right. 

Mr.  Halley.  Who  introduced  you  to  Mr.  Crosby? 

Mr.  BuRK.  The  sheriff  of  Dade  County,  Jimmy  Sullivan. 

Mr.  Halley.  What  did  Jimmy  Sullivan  tell  you  ? 

Mr.  BuRK.  One  day,  I  don't  just  remember  the  date,  the  sheriff'  left 
an  order  with  the  chief  criminal  investigator,  Jim  Hawkins,  notifying 
me  not  to  go  out  to  serve  any  papers.  He  said  he  would  like  to  see 
me.  Well,  I  stayed  after  lunch.  I  came  up  and  went  back  in  the 
criminal  office  up  there  and  Sullivan  was  there  and  Mr.  Crosby.  The 
sheriff  said,  "Tom,  I  want  to  introduce  you  to  a  fellow  by  the  name 
of  Bill  Crosby.  He  i-epresents  the  Governor's  office.  I  want  you  to 
take  him  any  place  where  he  wants  to  go  regardless  of  where  it  is  so 
long  as  it  is  in  Dade  Countv." 

I  said,  "O.  K.,  sheriff." 

Mr.  Halley.  Was  Mr.  Crosby  supposed  to  be  investigating  any- 
thing in  particular? 

Mr.  Bi^RK.  Not  that  I  know  of. 

Mr.  Halley.  Gambling? 

Mr.  BuRK.  The  way  we  started  that  woidd  be  the  only  thing  he 
wont  to. 


ORG'AJSriZED    CRIME    IN    INTERSTATE    OOMMEROE  203 

Mr.  Halley.  Slot  machines? 

Mr.  BuRK.  I  guess  anything;  operated. 

Mr.  Halley.  Let's  be  specific.  Didn't  Mr.  Crosby  say  lie  was  sup- 
posed, he  was  there  to  investigate  slot  machines  in  Dade  County  ? 

Mr.  BuRK.  He  told  that  to  the  sheriff  maybe,  but  I  didn't  hear  it. 

Mr.  Halley.  He  didn't  tell  that  to  you  ? 

Mr.  BuRK.  No. 

Mr.  Halley.  But  did  the  sheriflf  tell  you  Crosby  was  there  to  inves- 
tigate slot  machines? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  Did  you  have  that  conversation  in  the  morning,  of  a 
particular  day? 

Mr.  BuRK.  No;  I  believe  it  was  after  lunch. 

Mr.  Halijsy.  Then  what  happened? 

Mr.  BuRK.  Bill  Crosby  and  I  left.    We  went  to  the  beach. 

Mr.  Halley.  You  mean  3'ou  got  into  an  automobile? 

Mr.  BuRK.  That  is  correct. 

Mr.  Halley.  Whose  car? 

Mr.  BuRK.  My  car. 

Mr.  Halley.  Your  personal  car  or  an  official  car? 

Mr.  BuRK.  My  car. 

Mr.  Halley.  Your  personal  car  ? 

Mr.  BuRK.  That  is  right. 

Mr.  Halley.  What  kind  of  an  automobile  was  that  ? 

Mr.  BuRK.  It  was  a  Chrvsler. 

Mr.  Halley.  A  Chrysler? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  What  year  ? 

Mr.  BuRK.  1948. 

Mr.  Halley.  1948  Chrysler? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  What  model? 

Mr.  BuRK.  New  Yorker. 

Mr.  Halley.  That  is  the  large  one  ? 

Mr.  BuRK.  No;  there  is  an  Imperial. 

Mr.  Halley.  There  is  one  bigger? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  What  did  you  pay  for  that  Chrysler  automobile? 

Mr.  BuRK.  I  turned  my  other  car  in.  I  turned  in  my  1944  or  1945 
Dodge,  and  I  had  to  pay  I  think  it  was  $92  to  the  finance  man. 

Mr.  Halley.  You  mean  somebody  gave  you  a  brand  new  Chrysler 
in  return  for  a  1944  Dodge  ? 

Mr.  BuRK.  Well,  no. 

Mr.  Halley.  How  much  money  did  you  pay  for  the  Chrysler  auto- 
mobile ? 

Mr.  BuRK.  I  just  don't  remember  what  I  laid  down. 

Mr.  Halley.  You  paid  money  for  it? 

Mr.  BuRK.  I  had  to  give  something  in  order  to  get  it  off  the  floor; 
that  is  correct. 

Mr.  Halley.  How  much  did  you  give? 

Mr.  BuRK.  I  just  don't  remember  what  it  was. 

Mr.  Halley.  Did  you  then  pay  it  out  monthly  or 

Mr.  BuRK.  Paid  with  the  finance  man. 

Mr.  Halley.  You  financed  it? 


204  'ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE 

Mr.  BuRK.  That  is  right. 

Mr.  Hallet.  And  you  paid  monthly  ? 

Mr.  BuRK.  That  is  right. 

Mr.  Halley.  How  much  was  the  total  price  of  that  Chrysler  ?  Ap- 
proximately over  $2,000? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  Close  to  $3,000,  wasn't  it? 

Mr.  BuRK.  I  think  it  was  $2,600. 

Mr.  Halley.  $2,600  ? 

Mr.  BuRK.  Yes,  sir.     Maybe  it  was  a  little  more. 

Mr.  Halley.  It  might  have  been  a  little  over  that? 

Mr.  BuRK.  It  might  be. 

Mr.  Halley.  Did  you  handle  that  out  of  savings,  too? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  Now  to  get  back  to  Crosby ;  where  did  you  go  ? 

Mr.  BuRK.  We  went  to  Miami  Beach. 

Mr.  Halley.  What  did  you  do  there  ? 

Mr.  BuRK,  After  we  crossed  the  causeway  he  directed  me  to  go, 
where  to  go. 

Mr.  Halley.  Where  did  he  direct  you  to  go  ? 

Mr.  BuRK.  I  believe  the  first  place  we  went  to  Avas  up  at  some  hotel 
on  Collins  Avenue. 

Mr.  Halley.  What  hotel  was  it  ? 

Mr.  BuRK.  I  can't  remember.  I  just  don't  remember.  And  we  took 
the  place — knocked  the  place  off  and  they  were  convicted  and  paid  their 
fine. 

Mr.  Halley.  What  were  they  doing  there  ? 

Mr.  BuRK.  OperatinjL^. 

Mr.  Halley.  Operating  what  ? 

Mr.  BuRK.  Book  or  horse. 

Mr.  Halley.  Horse  parlor? 

Mr.  BuRK.  You  can  call  it  that ;  yes. 

Mr.  Halley.  No  slot  machines  ? 

Mr.  BuRK.  No. 

Mr.  Halley.  Were  there  any  slot  machines  in  the  lobby  ? 

Mr.  BuRK.  No,  I  don't  think  so.     I  didn't  see  no  slot  machines. 

Mr.  Halley.  You  didn't  see  any  slot  machines  over  there? 

Mr.  BuRK.  No,  sir.     There  was  a  barroom. 

Mr.  Halley.  Where  did  you  go  after  the  first  hotel  that  you  knocked 
off? 

Mr.  BuRK.  We  took  the  defendant  back  to  the  county  jail  and  booked 
him.     He  went  out  on  $500  bond. 

Mr.  Halley.  Then  what  did  you  do  ? 

Mr.  BuRK.  I  don't  think  we  went  out  that  day  any  more. 

Mr.  Halley.  Did  you  go  out  on  a  subsequent  day  ? 

Mr.  BuRK.  We  might  have  went  out  probably  the  following  day  or 
the  day  after. 

Mr.  Halley.  What  happened  the  next  time  you  went  out? 

Mr.  Btjrk.  We  went  to  the  beach,  went  around  by  the  courthouse, 
which  is  located  down  Meridian  Avenue  and  First  Street,  and  he  says, 
"Tom,  let's  go  up  Washington  Avenue."  We  went  up  Washington 
Avenue  and  he  savs,  "Pull  over  there  at  Fourth  Street  and  Washing- 
ton Avenue."  "We  are  going  into  that  apartment  house."  he  said.  I 
didn't  say  anything.     As  I  pulled  up  to  the  curbstone  there  was  one 


ORGANIZED    CRilME    IN   INTERSTATE   COMMERCE  205 

of  our  men,  George  the  Greek.  As  I  pulled  up  I  said,  "What  are  you 
doing  here,  George?"  and  he  said,  "I  am  serving  a  paper."  I  said, 
"Since  when  do  you  work  for  the  civil  department?"  and  he  says, 
"I  don't  work  for  the  civil  department.  I  am  just  checking  up  on  a 
couple  of  joints."     I  said,  "That  is  fine." 

Mr.  Halley.  Let  us  get  this  stra'ght.  You  found  George  the  Greek 
in  the  bookmaking  establishment  ? 

Mr.  BuRK.  No,  sir.    He  was  on  the  curbstone. 

Mr,  Halley.  He  wasn't  in  the  establishment? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  But  he  didn't  belong  in  that  part  of  town  at  all,  is 
that  right  ? 

Mr.  BuRK.  It  looked  funny  to  me  because  he  was  working  on  the 
telephone.  That  was  where  liis  duty  was  on  the  telephone  and  when 
I  seen  him  he  was  on  the  curbstone  waiting. 

Mr.  Halley.  Then  what  happened  ? 

Mr.  BuRK.  So  George  spoke  to  Mr.  Crosby.  He  said  a  few  words. 
He  said,  "We  are  going  to  take  that  place." 

Mr.  Halley.  Who  said,  "We  are  going  to  take  that  place"  ? 

Mr.  BuRK.  Mr.  Crosby. 

Mr.  Halley.  Then  what  happened  ? 

Mr.  BuRK.  So  I  asked  Crosby,  I  says,  "What  is  going  on  here?" 
and  he  says,  "It  is  one  of  the  joints."  I  said,  "You  got  a  warrant?" 
I  said  to  George  the  Greek,  "You  got  a  warrant?"  and  he  said,  "No," 
I  said,  "Go  ahead,  let's  see  what  you  can  do." 

So  they  went  in  and  I  followed  them.  They  had  a  guy  in  the  hall 
up  against  the  wall.  George  the  Greek  had  this  fellow  against  the 
wall  with  his  hands  in  his  pockets,  I  approached  the  place  and 
I  said,  "George,  what  is  wrong?"  and  he  said,  "He  just  come  out  of 
the  door  clown  there."  I  said,  "You  can't  put  your  hands  in  his  pockets 
iniless  3^ou  got  a  warrant.  You  can't  put  your  hands  in  anybody's 
pockets  unless  you  got  a  warrant.  You  haven't  put  the  boy  under 
arrest  yet,  have  you?"  and  he  said,  "Well,  I  have  seen  him  come  from 
that  door."  I  said,  "Go  ahead,  make  the  arrest  and  see  where  it  will 
get  you," 

So,  he  turns  the  guy  loose  and  he  walked  up  and  down  the  hall 
once  or  twice  or  three  or  four  times.  So  I  says,  "That  is  the  door," 
I  busted  the  door  in.  I  just  remember  the  number  of  the  door.  I 
do  remember  the  joint  was  450  Washington  Avenue.  When  we  got 
in  there  I  broke  in  the  door  and  I  broke  into  a  bedroom.  There  were 
two  beds  in  that  room  and  there  was  another  door.  I  knocked  that 
one  down. 

And  that  is  what  I  had  seen. 

Mr.  Halley.  What  did  you  see  ? 

Mr.  BuRK.  I  seen  about  four  or  five  men  in  there. 

Mr.  Halley.  What  were  they  doing  ? 

Mr.  BuRK.  Just  sitting  around  the  table  just  like  these  gentlemen 
are  sitting  around  here  [indicating], 

Mr.  Halley.  There  were  no  telephones  ? 

Mr.  BuRK.  There  was  telephones,  there ;  yes,  sir, 

Mr.  Halley.  Were  they  operating  book? 

Mr.  BuRK.  I  believe  it  was  an  office. 

Mr.  Halley.  You  believe  it  was  an  office  ? 


206  ORGANIZED    CRIME    IX    INTERSTATE    COMMERCE 

Mr.  BuRK.  Yes. 

Mr.  Halley.  What  kind  of  an  office  ? 

Mr.  BuRK.  Horse  booking. 

Mr.  Halley.  Horse-booking  office  ? 

Mr.  BuRK.  There  are  two  ends  to  this;  a  parlor  and  an  office  and 
a  room  are  two  different  things.  When  you  talk  "horse  booking," 
that  is  an  office.  If  j^ou  are  going  into  a  horse  room,  that  is  where 
they  have  sheets. 

Mr.  Halley.  All  of  the  time  Mr.  Crosby  was  with  you  ? 

Mr.  BuRK.  Correct. 

Mr,  Halley.  He  came  right  along  behind  you  ? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  Did  you  arrest  the  men  that  you  found  in  that  room? 

Mr.  BuRK.  I  made  no  arrest,  because  I  couldn't  make  it  stick.  I 
broke  the  joint  down,  broke  it  open.  I  said,  "Do  you  want  to  file," 
and  he  said,  "I  can't  file." 

Mr.  Halley.  Who  said  that  ? 

Mr.  BuRK.  Crosby.    I  said,  "Why  not — you  are  well  heeled." 

Mr.  Halley.  What  do  you  mean  by  "you  are  well  heeled"  ? 

Mr.  BuRK.  He  had  a  gun  on.  He  said,  "I  can't  file.  I  don't  know 
what  to  do.  There  is  no  use  to  file  on  them.  Their  mouthpiece  will  be 
helre." 

Mr.  Halley.  By  "mouthpiece"  do  you  mean  the  lawyer? 

Mr.  BuRK.  Attorney. 

Mr.  Halley,  Did  you  have  a  pretty  good  idea  who  the  mouthpiece 
was  going  to  be  ? 

Mr.  BuRK.  We  found  out  afterward.    He  came  there, 

Mr,  Halley,  Who  was  it? 

Mr,  BuRK,  Mr,  Bennie  Cohen, 

Mr.  Halley.  Was  Bennie  Cohen  the  mouthpiece  for  the  S.  &  G. 
boys  ? 

Mr.  BuRK.  I  don't  know.     I  just  heard  about  that. 

Mr.  Halley.  You  know  the  S.  &  G.  ? 

Mr.  BuRK.  Well,  I  have  heard  so  much  over  the  grapevine, 

Mr,  Halley,  What  have  you  heard  ? 

Mr,  BuRK.  I  have  heard  of  one  or  two  guys  like  Jules  Levitt.  Just 
the  w^ay  the  paper  says,  and  we  always  see  another  new  name  in  the 
gang. 

Mr.  Halley.  Whose  new  name  did  you  see ;  whose  new  name  in  the 
gang? 

]\Ir.  BuRK.  Every  time  we  see  it  they  had  a  new  name. 

Mr.  Halley.  Would  the  new  name  in  the  gang  be  Harry  Russell? 

Mr,  BuRK.  I  never  heard  of  Harry  Russell. 

Mr.  Halley,  You  never  heard  the  name  Harry  Russell  before  today  ? 

Mr,  BuRK,  Only  today, 

Mr,  Halley,  I  think  we  had  better  stop  here  and  jiause  because 
we  are  going  a  little  too  fast.  You  are  under  oath  and  the  question 
of  2")erjury  goes  just  as  much  to  what  you  heard  as  to  what  you  did 
■or  didn't  do.  Now,  did  you  ever  hear  before  this  day  of  Harry 
Russell  ? 

Mr.  BuRK.  No.  sir. 

Mr.  Halley.  You  never  heard  of  him? 

Mr,  BuRK.  No, 


ORGAJSriZED    CRIIME    IN   INTERSTATE    COMMERCE  207 

Mr.  Halley.  Not  even  in  the  newspapers? 

Mr.  BuRK.  Only  what  I  seen  in  the  papers. 

Mr.  Halley.  You  never  heard  his  name  spoken  by  anyone? 

Mr.  BuRK.  No,  sir, 

Mr.  Halley.  To  jjo  on  with  tlie  pinch  with  Crosby.  What  hap- 
pened after  your  conversation  in  which  you  tokl  him  to  make  the 
pinch  ? 

Mr.  BtiRK.  Well,  10  or  15  minutes  went  by  and  all  of  a  sudden 
here  comes  Jules  Levitt  and  his  attorney,  and  he  says,  "What  are  you 
doing?" 

]Mr.  Halley.  Were  you  still  in  the  house  ? 

Mr.  BuRK.  We  were  sitting  in  the  bedroom. 

Mr.  Halley.  Was  Levitt  there  already  ? 

Mr.  BuRK.  In  about  15  minutes. 

Mr.  Halley.  He  must  have  had  a  pretty  good  idea  of  what  was 
going  on. 

Mr.  BuRK.  No  phone  rang. 

Mr,  Halley,  You  had  not  made  the  pinch? 

Mr.  BuRK.  No. 

Mr.  Halley.  Jules  Levitt  walked  into  the  bookmaking  establish- 
ment ? 

Mr,  BuRK,  About  10  minutes  afterward. 

Mr.  Halley.  Who  was  with  him? 

Mr.  BuRK.  Bennie  Cohen,  his  attorney. 

Mr.  Halley.  Bennie  Cohen? 

Mr.  BuRK.  Yes. 

Mr,  Halley.  What  conversation  f ollow' ed  ? 

Mr,  BuRK,  And  then  Jules  said  to  me,  "What  are  you  doing  here? 
Do  you  have  a  warrant?"  I  said,  "No,"  and  he  said,  "How  did  you 
get  in;  who  broke  the  door  down?"  I  said,  "We  did,"  and  he  says, 
"All  right,  we  will  take  care  of  that."  So  Jules  Levitt  walked  up 
the  hall  with  Mr.  Crosby  about  20  feet  away  and  the  conversation 
was  going  on  up  there,  so  I  couldn't  hear  it.  I  was  still  in  the  room, 
right  there  on  the  threshold  looking  one  way  and  then  the  other. 
Mr.  Levitt  comes  back  and  Mr.  Crosby  comes  back  and  says,  "Well, 
we  made  a  deal.  We  will  take  in  one."  I  said,  "You  will  take  all 
or  none.  If  I  have  to  file  on  them,  I  am  going  to  take  all  or  none, 
because  our  office  don't  work  like  that." 

Mv.  Halley.  What  happened  next? 

Mr.  BuRK.  He  said,  "Well,  we  will  come  to  the  conclusion  that  we 
will  settle  the  matter  that  way."  I  said,  "I  couldn't  see  just  taking- 
one."   We  will  take  all  or  none,  I  said. 

Mr.  Halley.  What  happened  then? 

Mr.  BuRK.  We  didn't  take  any. 

Mr.  LIalley.  Would  you  state  the  names  of  these  people  that  you 
found  in  this  bookmaking  establishment? 

Mr.  BuRK.  We  took  no  names  at  all. 

Mr.  Halley.  Did  you  file  a  report  ? 

INIr.  BuRK.  We  ran  them  all  out  of  the  place,  closed  up  the  place, 
told  them  to  move  and  get  out  and  stay  out.  '  I  had  no  grounds  to 
make  a  pinch. 

INIr.  Halley.  AVhat  grounds  did  you  have  to  tell  them  to  move  out 
and  get  out  and  stay  out,  if  you  had  no  grounds  to  make  a  pinch? 


208  org'Ajstized  criime  ix  interstate  oommerce 

Mr.  BuRK.  After  breaking  the  door  down  I  told  them  that  if  they 
didn't  move  and  stay  out  I  %Yould  be  back  there  in  half  an  hour  and  I 
would  make  a  pinch. 

JNIr.  Halley.  Did  they  move  out  in  your  presence  ? 

Mr.  BuRK.  No.    George  and  I  came  back  home. 

Mr.  Halley.  Did  you  come  back  in  half  an  hour  to  see  if  they  had 
moved  ? 

Mr.  BuRK.  Yes;  with  a  search  warrant. 

Mr.  Halley.  Where  did  you  get  the  search  warrant? 

Mr.  BuRK.  I  believe  the  search  warrant  was  made  out  by  a  circuit 
judge.  I  don't  remember  whether  it  was  Hawthorne,  Milledge,  or 
who,  because  I  didn't  file  the  affidavit  for  it.  I  think  George  the 
Greek  did.    Anyway,  I  didn't  file  it, 

Mr,  Halley.  Dicl  you  go  back  with  Crosby  with  the  search  war- 
rant? 

Mr.  BuRK.  Yes. 

Mr,  Halley.  What  happened  at  that  time  ? 

Mr.  BuRK.  We  went  back  there  and  the  joint  looked  like  a  dance 
hall;  they  moved  the  crowd  out — in  other  words,  everything  was 
vacated. 

Mr.  Halley,  No  equipment  there  ? 

Mr,  BuRK,  No, 

Mr,  Halley,  None  of  the  men  there  ? 

Mr.  BuRK.  There  wasn't  a  soul  in  the  place. 

Mr,  Halley,  Were  you  surprised  to  find  the  place  empty? 

Mr.  BuRK.  Well,  from  common  sense,  if  they  were  there  they  sure 
would  have  got  it, 

Mr,  Halley,  You  knew  they  wouldn't  be  there  when  you  got  back 
with  the  search  warrant,  didn't  you  ? 

Mr.  BuRK,  Personally  I  didn't  ask  for  the  warrant.  I  believe  it  was 
Crosby. 

Mr,  Halley.  What  was  the  next  thing  that  happened  in  your 
transactions  with  Crosby? 

Mr,  BuRK.  What? 

Mr.  Halley.  What  was  the  next  thing  that  happened  in  connection 
with  Crosby  ? 

Mr.  Bltrk.  Nothing.    I  don't  belie\'e  I  went  out  with  him  anymore. 

Mr.  Halley,  Did  you  go  back  to  the  sheriff's  office  with  him? 

Mr,  BuRK,  No,  I  think  we  went  up  to  some  hotel  again  that  we 
pinched  a  couple  of  days  before  that.  George  the  Greek  and  Mr. 
Crosby  had  made  the  entrance  into  the  place  but  they  came  out  with 
nothing, 

Mr,  Halley.  Did  you  go  to  any  other  hotels  or  any  other  places? 

Mr.  BuRK,  That  day? 

Mr,  Halley.  Yes. 

Mr.  BuRK.  No. 

Mr.  Halley.  Did  you  go  with  Mr.  Crosby  then  to  a  total  of  only 
two  places  altogether? 

Mr.  BuRK.  I  think  he  took  me  up  to  Collins  Avenue  around  Twen- 
tieth Street  and  he  says,  "1  believe  that  this  is  n  joint  over  there  and 
we  will  have  to  get  a  warrant  for  it.''  He  was  just  pointing  to  some 
hotel. 

Mr.  Halley.  What  hotel  was  he  pointing  to? 

Mr.  BuRK.  I  don't  know. 


ORGANIZED   CBIIME    IN   INTERSTATE    COMMERCE  209 

Mr.  Halley.  If  he  pointed  to  a  hotel  in  that  area,  could  you  miss  a 
joint? 

Mr.  BuRK.  Could  we  ? 

Mr.  Halt.ey.  Does  not  practically  every  hotel  in  that  area  have  a 
bookie  establishment  in  it  ? 

Mr.  BuRK.  I  don't  know.     They  could  have  but  I  didn't  see  them. 

Mr.  Halley.  That  is  under  your  jurisdiction  ? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  You  know  that  most  of  those  hotels  have  bookmaking 
establishments? 

Mr.  BuRK.  No,  sir ;  I  don't  know  that  every  hotel  has. 

Mr.  Halley.  I  did  not  say  every  hotel.     I  said  most  of  the  hotels. 

Mr.  BuRK.  Except  that  we  seen  none  in  any  one  of  them  hotels. 

Mr.  Halley.  What  happened  after  Crosby  pointed  to  the  hotel  and 
said,  "I  think  there  is  a  joint  there  ?" 

]\Ir.  BuRK.  We  didn't  make  any  more  headway. 

Mr.  Halley.  Just  what  did  you  say  ? 

Mr.  BuRK.  I  said,  "Do  you  have  a  search  warrant?"  We  even  tried 
lo  go  to  the  back  door.  I  said,  "How  are  we  going  to  get  in  with  this 
front  that  I  have  and  the  front  that  you  have  got.     We  will  never  make 

it." 

Mr.  Halley.  Do  you  remember  that  Crosby  had  a  map  with  him  of 

some  places  marked  off  on  it  ? 

Mr.  BuRK.  That  is  correct. 

Mr.  Halley.  Wlien  did  he  first  show  you  the  map  ? 

Mr.  BuRK.  When  we  went  out  to  Twenty-thircl  Street  and  stopped 
around  Liberty  Avenue  and  the  Canal ;  it  was  in  front  of  a  floral  shop, 
and  he  kept  walking  up  and  down  and  he  said,  "Tom,  there  is  place 
back  in  here,"  and  I  said,  "Let's  go  back."  So  we  went  back  and  Crosby 
didn't  enter.  We  noticed  that  all  the  doors  Avas  locked  and  we  couldn't 
hear  nothing,  and  then  he  said,  "How  about  going  out  and  see  that 
other  place  out  there?"  He  knocked  on  the  doors  and  nobody  came 
out.  Then  we  went  to  this  young  lady  behind  the  counter  and  we 
asked  her  did  she  have  a  key.  I  said,  "My  name  is  Tom  Burk  of 
the  sheriff's  office,"  and  she  said,  "I  don't  have  any  keys  to  that  room, 
but  I  will  call  the  landlord,"  so  she  picked  up  the  phone  and  soon 
Bennie  Cohen  came  and  soon  Jules  Levitt  came. 

Mr.  Halley.  Again  at  that  place  ? 

Mr.  Burk.  Yes. 

Mr.  Halley.  How  soon  did  they  appear  after  you  announced  your- 
self to  the  girl  as  from  the  sheriff's  office  ? 

Mr.  Burk.  In  10  minutes. 

Mr.  Halley.  Was  there  any  conversation  ? 

Mr.  Burk.  The  conversation  was  between  Mr.  Crosby  and  the 
attorney. 

Mr.  Halley.  Bennie  Cohen? 

Mr.  Burk.  Yes. 

Mr.  Halley.  You  just  pointed  to  ]\Ir.  Bennie  Cohen  in  this  room  ? 

Mr.  Burk.  I  meant  to  say  that  Mr.  Crosby  is  back  there. 

Mr.  Halley.  Mr.  Crosby  is  here  too  ? 

Mr.  Burk.  Yes.     I  was  sitting  alongside  of  him  all  day. 

Mr.  Halley.  What  conversation  was  there  between  Bennie  Cohen 
and  Crosby  ? 

Mr.  Burk.  Oh,  I  was  about  12  to  15  feet  away. 


210  ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE 

Mr.  Halley.  Getting  back  to  tliis  map,  didn't  Mr.  Crosby  show  you 
a  map  with  about  12  locations  marked  on  it  ? 

Mr.  BuRK.  No. 

Mr.  Hallet.  How  many  ? 

Mr.  BuEK.  Just  that  one.  Then  when  I  went  to  the  girl  behind  the 
counter  and  asked  if  the  landlord  or  landlady  was  there,  these  two 
other  gentlemen  came  on  the  scene  and  we  went  in  that  place  to- 
gether. 

Mr.  Halley.  What  did  you  find  ? 

Mr.  BuRK.  We  opened  the  ice  box  first  and  the  ice  box  was  warm; 
nothing  in  it.  There  were  two  telephones  laying  right  there  on  the 
counter. 

INIr.  Halley.  Nothing  at  all  in  there  ? 

Mr.  BuRK.  No. 

Mr.  Halley.  Did  you  make  any  effort  to  find  out  from  the  telephone 
company  what  service  that  place  had  been  getting? 

Mr.  BuRK.  No. 

Mr.  Halley.  Did  you  go  back  and  report  to  Sheriff  Sullivan  about 
Crosby  ? 

Mr.  BuRK.  No,  sir. 

Mr.  BuRK.  Did  you  make  a  report  about  your  investigation? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  Did  you  tell  him  that  Crosby  appeared  to  be  looking^ 
for  bookmaking  establishments? 

Mr.  BuRK.  There  was  nothing  else  said. 

Mr.  Halley.  Isn't  it  a  fact  that  both  you  and  Sullivan  had  insisted 
that  Crosby  was  down  here  investigating  slot  machines  ? 

Mr.  BuRK.  That  word  I  didn't  hear — slot  machines. 

Mr.  Halley.  What  word  did  you  hear  ? 

Mr.  BuRK.  The  sheriff  told  me  to  go  with  Crosby  and  to  go  to  any 
place  where  he  wants  to  go.  There  was  no  name  mentioned,  circus, 
gambling,  or  anything  else,  when  we  left  the  courthouse. 

Mr.  Halley.  You  didn't  realize  that  3^ou  were  going  on  a  gambling 
raid  ? 

Mr.  BuRK.  I  had  a  slight  feeling  but  I  didn't  know  where  in  the  hell 
he  was  going.  Wlien  we  go  across  from  the  police  station  he  said, 
"Tom,  we  will  turn  here  at  the  police  station  and  work  Washington 
Avenue." 

Mr.  Halley.  Isn't  it  a  fact  that  you  went  back  to  Sheriff  Sullivan 
and  said,  "This  fellow  Crosby  here  is  trying  to  make  cases  against 
bookmakers"  ? 

Mr.  BuRK.  No. 

Mr.  Halley.  Isn't  that  wliat  happened  ? 

Mr.  BuRK.  No. 

Mr.  Halley.  How  long  after  that  did  Crosby  depart  from  IVIiami? 
He  didn't  stay  around,  did  he  ? 

Mr.  BuRK.  If  he  came  in  the  office  I  didn't  see  him. 

Mr.  Halley.  You  never  saw  him  again? 

Mr.  BuRK.  No. 

Mr.  Halley.  No  more  pinches  were  made? 

Mr.  BuRK.  Yes,  sir. 

Mr.  Halley.  By  Crosby  ? 

Mr.  BuRK.  I  couldn't  answer  that.    He  never  made  a  pinch. 


ORG'AXIZED    CRIME    IN    INTERSTATE    OOIVEVIEROE  211 

Mr.  Hallky.  You  made  tliom  under  liis  direction? 

Mr.  BuRK.  Only  one. 

Mr.  HALr.EY.  No  more  after  that? 

Mr.  BuRK.  Not  with  Mr.  Crosby,  no. 

Mr.  Halley.  How  many  automobiles  do  you  own  today? 

Mr.  BuRK.  One. 

Mr.  Halley.  What  kind? 

Mr.  BuRK.  Chrysler. 

Mr.  Halley.  '48? 

Mr.  BuRK.  '50. 

Mr.  Halley.  When  did  you  buy  it  ? 

Mr.  BuRK.  I  bought  it  starch  8,  1950. 

Mr.  Halley.  Does  your  wife  own  an  automobile? 

Mr.  BuRK.  No,  sir. 

Mr.  Halley.  What  did  you  pay  for  the  Chrysler  that  you  own  today  ? 

Mr.  BuRK.  I  turned  one  in  and  got  $1,700  on  it  and  put  $500  down 
and  me  and  the  finance  company  haye  got  it  yet. 

Mr.  Halley.  What  model  Chrysler  did  you  purchase  this  year? 

Mr.  BuRK.  1950. 

Mr.  Halley.  A  New  Yorker  again  ? 

Mr.  BuRK.  I  don't  know.    I  call  it  a  station  wagon. 

Mr.  Halley.  That  is  more  suitable  on  the  farm? 

Mr.  BuRK.  You  can  use  it  on  a  f  ann. 

Mr.  Halley.  What  does  a  station  wagon  cost? 

Mr.  BuRK.  This  station  wagon  I  got  cost  $1,600,  and  me  and  the 
finance  company  still  haye  got  it. 

Mr.  Halley.  What  are  the  monthly  payments  on  it? 

Mr.  BuRK.  I  think  it  is  $132. 

Mr.  Halley.  A  month? 

Mr.  BuRK.  Yes. 

Mr.  Halley.  That  is  all  the  questions  I  haye. 

The  Chairman.  Just  one  more  question.  What  was  the  date  that 
you  won  the  $2,600  on  the  horse? 

Mr.  BuRK.  I  don't  know.  It  was  the  last  week  in  January  or  the 
second  week  in  January. 

The  Chairman.  January  what? 

Mr.  BuRK.  '49. 

The  Ciiair.^ian.  You  do  remember  the  occasion  yery  well? 

Mr.  Burk.  Yes.     I  had  a  warrant  to  pick  up  a  man  at  the  race  track. 

The  Chairman.  Before  serying  the  warrant  you  thought  you  would 
play  the  horses  a  little  yourself;  is  that  right? 

Mr.  Burk.  Yes.  In  other  words,  we  had  the  man  spotted.  He  had 
a  horse  running  and  I  didn't  want  to  interfere  with  the  race.  He  was 
standing  in  the  paddock  after  the  horses  went  out. 

The  Chairman.  You  said  that  when  you  got  the  race  track  you 
met  a  couple  boys? 

Mr.  Burk.  Yes. 

The  Chairman.  What  boys? 

Mr.  Burk.  Dobson  and  his  agent.  Dobson  was  a  jockey.  I  don't 
remember  the  agent's  name.  I  had  done  a  f ayor  for  Dobson  one  time. 
I  belieye  I  had  a  warrant  for  Dobson  one  time. 

The  Chairman.  So  you  spoke  to  Dobson,  the  jockey? 

Mr.  Burk.  He  was  standing  there. 

The  Chairman.  By  the  horse  he  was  going  to  ride? 


212        •         ORGANIZED    ORttME    IN   INTERSTATE    COMMERCE 

Mr.  BuRK.  Yes. 

The  Chairman.  And  he  gave  you  a  tip  on  the  horse  ? 

Mr.  BuRK.  He  didn't ;  the  agent  did. 

The  Chairman.  How  much  did  you  bet  on  the  horse  ? 

Mr.  BuRK.  I  think  I  put  $50  on  his  nose. 

The  Chairman.  $50? 

Mr.  BuRK.  Yes. 

The  Chairman.  And  you  got  $2,600  back? 

Mr.  BuRK.  Not  quite  $2,600.  I  think  he  closed  around  32  to  1,  a 
little  over  30  to  1. 

The  Chairman.  For  $50  on  his  nose  you  got  back  $2,600  ? 

Mr.  BuRK.  I  got  back  about  $2,600 ;  yes. 

The  Chairman.  What  did  you  do  with  that  money? 

Mr.  BuRK.  Kept  it. 

The  Chairman.  You  didn't  put  it  in  the  bank  ? 

Mr.  BuRK.  No. 

The  Chairman.  Did  you  have  a  bank,  account  prior  to  1949? 

Mr.  BuRK.  In  the  month  of  August ;  yes. 

The  Chairman.  Did  you  have  one  prior  to  that  time? 

Mr.  BuRK.  Yes,  no.    Yes. 

The  Chairman.  How  long  did  you  have  that  one  ?  How  long  before 
that  did  you  have  one? 

Mr.  BuRK.  Oh,  way  back  in  1921. 

The  Chairman.  Between  1921  and  1949  j'ou  did  not  have  any  bank 
account  ? 

Mr.  BuRK.  I  think  it  was  around  2  or  3  years  that  I  was  riding  a 
motorcycle  at  the  beach. 

The  Chairman.  You  handled  all  transactions  in  cash;  is  that 
correct  ? 

Mr.  BuRK.  That's  right. 

The  Chair:man.  When  was  it  that  you  bought  the  farm  ? 

Mr.  BuRK.  I  think  it  was  the  11th  day  of  June. 

The  Chairman.  What  year? 

Mr.  BuRK.  July. 

The  Chairman.  Of  what  year  ? 

Mr.  BuRK.  1949. 

The  Chairman.  It  was  August  1949  that  you  had  $3,000  in  tha 
bank  ? 

Mr.  BuKK.  No. 

The  Chairman.  When  did  you  have  $3,000  in  the  bank? 

Mr.  BuRK.  About  September. 

The  Chairman.  About  September  1949  ? 

Mr.  BuRK.  Yes. 

The  Chairman.  At  the  time  you  bought  the  farm  you  paid  $5,000 
in  cash? 

Mr.  Burk.  I  paid  $1,000  cash  and  $4,000  I  owed. 

The  Chairman.  Shortly  after  you  put  $3,000  in  the  bank? 

Mr.  Burk.  Every  month  the  checks  would  come  in  and  I  had  close 
to  $3,000  and  maybe  more. 

The  Chairman.  Just  a  regular  bank  account? 

Mr.  Burk.  Yes ;  Coconut  (irove  Bank. 

The  Chairman.  How  long  did  you  keep  it  in  there? 

Mr.  Burk.  Some  of  it  is  still  there  yet.  .  I 


ORGANIZED    CRIME    IX    INTERSTATE    OOMJVIERCE  213 

I 

Tlie  Chairman.  You  kept  around  $3,000  or  nuiybe  more  in  tliat 
bank  for  some  considerable  time  ? 

Mr.  BuRK.  It  ran  up  and  down.  Just  as  fast  as  the  fruit  payments 
were  coming  in,  and  of  course  I  was  paying  off  bills. 

The  Chairman.  Did  you  keep  some  cash  in  the  tin  box  you  told  us 
about? 

Mr,  BuRK,  No,    Once  in  a  while  we  got  cash  for  the  fruit. 

The  CiiAiR3ix\N,  You  did  have  some  money  in  the  box  at  home 
during  the  time  j^ou  had  the  $3,000  bank  account? 

Mr.  BuRK.  No, 

The  Chairman.  Why  didn't  you  use  that  $3,000  to  pay  something  on 
the  $4,000  note  ? 

Mr.  BuRK.  I  gave  them  $1,000  cash,  and  I  gave  a  note  for  $4,000,  I 
believe  it  was,  and  I  put  $1,700  in  the  bank  and  I  kept  the  rest. 

The  Chairman.  You  had  to  pay  interest  on  the  note,  didn't  you? 

Mv.  BuRK.  That's  right. 

The  Chairman.  Your  bank  account  wasn't  drawing  interest,  was 
it? 

Mr.  BuRK.  No. 

The  Chairman.  You  paid  $500  down  and  you  signed  a  note  for 
$4,000? 

Mr.  BuRK.  That's  right. 

The  Chairman.  And  you  have  not  paid  the  note  yet? 

Mr.  Bui'.K.  No. 

The  Chairman.  That  is  all.    Thank  you. 

TESTIMONY  OF  MELVIN  J.  EICHARD,  CITY  COUNCILMAN, 
MIAMI  BEACH,  FLA. 

The  Chairman.  Do  you  solemnly  swear  that  the  testimony  you 
will  give  the  committee  will  be  the  whole  truth  and  nothing  but  the 
truth? 

Mr.  Richard.  I  do. 

Mr.  Halley.  What  is  your  occupation,  Mr.  Richard  ? 

Mr.  Richard.  I  am  an  attorney. 

Mr.  Halley.  Do  you  hold  any  official  position  ? 

Mr.  Richard.  Yes.  I  am  a  city  councilman  in  the  city  of  Miami 
Beach. 

Mr.  Halley,  How  long  have  j^ou  occupied  that  position? 

Mr.  Richard.  For  a  little  over  a  3'ear.  It  was  June  of  last  year  I 
was  elected. 

Mr.  Halley.  For  how  long  a  term  were  you  elected  ? 

Mr.  Richard.  Four  years. 

Mr.  Halley.  During  your  campaign,  and  after,  have  you  taken  any 
public  position  about  gambling  on  Miami  Beach? 

Mr.  Richard.  Yes;  I  have  strenuously  opposed  gambling  activities 
and  the  racket  syndicates  that  operate  them. 

Mr.  Halley.  Did  you  do  that  during  j^our  campaign  ? 

Mr.  Richard.  Yes ;  I  did  it  during  my  campaign  and  in  a  previous 
campaign  in  which  I  was  not  elected,  and  during  the  past  4  or  5  years, 
since  I  was  released  from  the  Navy,  I  have  been  actively  engaged  in 
work  of  that  sort  in  the  city  of  Miami  Beach. 

Mr.  Halley.  Have  you  made  an  effort  to  ascertain  whether  or  not 
the  police  department  of  Miami  Beach  was  performing  its  duty  ? 


214  ORGANIZED   OREME    IN   INTEKSTATE   COMMERCE 

Mr.  Richard.  I  have  on  more  than  one  occasion. 

Mr.  Halley.  And  in  that  connection  did  yon  have  any  conversation 
with  any  members  of  the  police  department  ? 

Mr.  Richard.  Yes ;  I  did. 

Mr.  Halley.  Did  you  have  any  conversations  with  a  man  named 
Phil  Short? 

Mr.  Richard.  Yes ;  I  did. 

Mr.  Halley.  Would  you  state  when  you  had  such  conversation? 

Mr.  Richard.  I  believe  the  date  was  May  10  and  May  11  of  tliis  year. 
The  first  conversation  was  a  telephone  conversation,  which  I  recorded, 
and  the  second  conversation  was  a  conversation  in  my  office,  which  I 
also  recorded,  but  the  second  recordation  was  not  a  good  record — it 
was  not  a  clear  record. 

I  have  the  telephone  conversation  with  me  here,  if  you  would  like 
to  hear  it. 

Mr.  Halley.  Do  you  recall  the  second  conversation  ? 

Mr.  Richard.  Yes ;  I  do  recall  the  content  of  the  second  conversation. 

Mr.  Halley.  But  of  the  first  you  do  actually  have  the  recording  ? 

Mr.  Richard.  Yes ;  I  have  it. 

Mr.  Halley.  With  the  permission  of  the  committee,  may  the  witness 
produce  the  recording  ? 

The  Chairman.  Yes. 

Mr.  Halley.  Will  you  produce  the  recording,  please? 

Mr.  Richard.  Yes,  sir.     It's  in  a  wire-recording  machine. 

Mr.  Halley.  Before  you  produce  the  recording,  may  I  ask  you  this 
question:  Who  was  Phil  Short  with  whom  you  had  the  conversation? 

Mr.  Richard.  Phil  Short  is  an  officer  in  the  Miami  Beach  police 
department  now.  I  believe  he  is  a  lieutenant.  He  previously  was 
chief  of  police  until  after  this  last  election. 

Mr.  Halley.  Will  you  go  ahead  with  the  recording? 

Mr.  Richard.  Surely. 

(The  following  is  a  typewritten  transcription  of  the  wire  recording 
played  to  the  committee  by  Mr.  Richard :) 

A  Voice.  Police  headquarters. 

Voice.  Is  Lieutenant  Short  there? 

Voice.  No  ;  he's  not ;  he's  out  in  the  garden. 

Voice.  This  is  Melvin  Richard.     Could  you  get  him  to  call  me? 

Voice.  Just  a  minute  ;  here  he  comes  walking  in  the  door. 

Voice.  Hello. 

Voice,  Phil? 

Voice.  Yes. 

Voice.  IMelvin 

Voice.  Yes. 

Voice.  I  just  caught  you  by  accident. 

Voice.  Uh-huh. 

Voice.  Listen,  I'm  curious  about  something.  Couple  of  people  have  been  talk- 
ing to  me  about  that  article  that  appeared  in  the  Florida  Sun  about  the  Club 
Collins. 

Voice.  Yes. 

Voice.  According  to  the  article  in  the  Sun,  you  testified  you  saw  gambling  in 
that  place  at  some  previous  time. 

Voice.  That's  right. 

Voice.  And  that  you  went  away  and  you  came  back  and  you  attempted  to  make 
the  arrest  on  this  particular  night.  How  come  you  didn't  make  an  arrest  the 
time  you  were  there  and  saw  them  gambling? 

Voice.  All  that  I  ever  saw  was  poker  and  skin — that  kind  of  games;  that  was 
^  or  4  years  ago. 

Voice.  This  was  a  long  time  ago? 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  215 

Voice.  Yes ;  that's  right.  I  noticed  there  was  games  of  one  sort  and  another 
going  on  there  all  the  time,  and  I  tried  to  find  if  there  is  right  now.  But  to  get 
in  and  find  them,  that's  another  question.  You  have  to  have  search  wai-rants  and 
everything  else.  There  was  a  time,  you  know,  we  could  go  into  tliose  places, 
knock  down  a  door  and  go  on  in  and  there  would  he  nothing  said  ahout  it,  but 
nowadays  they  holler  "illegal  entry"  and  all  that  sort  of  thing,  so  you've  got  to 
get  a  search  warrant,  I  guess,  to  get  into  them. 

Voice.  Well,  that  place  isn't  3  years  old,  is  it? 

Voice.  Oh,  that  place  has  been  there  for  5  or  6  years,  ever  since  that  building 
was  remodeled ;  when  Ben  Kaye  had  that  place  up  there,  when  he  first  built  it. 
You  remember  when  Ben  Kaye  built  tliat  building.     That  was  at  least  5  years  ago. 

Voice.  Uh-huh. 

Voice.  How  come  an  arrest  wasn't  made  on  that  occasion,  3  years  ago? 

Voice.  Well,  I  don't  remember  right  now.  They  was  playing  what  tliey  called 
short  cards,  which  was  permissible  at  that  time.  I  went  in  there  because  I 
understood  there  was  a  crap  game  running  in  there,  and  all  that  they  were  playing 
was  short  cards,  and  short  cards  at  that  time  was  permissible. 

Voice.  What  do  you  mean,  "permissible"?    Somebody  said  it  was  O.  K.? 

Voice.  Well,  they  had  an  O.  K.  from  somebody ;  yes.  I  don't  know  who  from, 
but  I  was  told  not  to,  not  to  interfere  with  short  card  games. 

Voice.  Were  you  chief  then? 

Voice.  No  ;  no,  that  was  before ;  before  that  time. 

Voice.  Who  would  give  you  orders  like  that?     Where  would  you  get  them  from? 

Voice.  Chief  of  police. 

Voice.  You  don't  know  who  he  got  them  from? 

Voice.  No  ;  I  don't. 

Voice.  Well,  when  you  were  chief  who  gave  you  orders  about  what  should  and 
shouldn't  be  done,  what  could  operate? 

Voice.  Melvin,  I  don't  want  to  get  involved  here  and  get  somebody  in  trouble 
now. 

Voice.  Well,  I'm  trying  to  get  to  the  bottom  of  this,  and  I  have  been  trying  for 
a  long  time,  and  I  don't  care  much  who  gets  in  trouble,  as  long  as  it's  on  the 
level.     I  don't  want  to  do  anything  dishonest. 

Voice.  Well,  it  always 

Voice.  I  mean,  I  didn't  call  you  up  for  the  purpose  or  with  the  intention  of 
having  this  conversation  with  you  that  led  into  this.  I  would  like  to  sit  down 
with  you  and  discuss  it  with  you  at  length. 

Voice.  Well,  any  time  you're  ready. 

Voice.  But  I  would  like  to  know  from  you,  if  you  can  tell  me,  who  was  it  that 
gave  you  orders  when  you  were  chief?  Somebody  gave  you  orders,  about  who 
was  to  operate  and  who  wasn't  to  operate  and  when  they  were  to  operate  and 
when  they  weren't. 

Voice.  Well,  as  a  rule  it  was  Mr.  Renshaw  that  they  charged  they  interfered 
with  the  hotels,  and  so  forth,  and  were  playing  short  cards  and  playing  for  the 
entertainment  of  the  guests  and  let  the  guests  play  cards  in  the  hotel  lobbies,  and, 
and  I  usually  took  my  orders  from  him. 

Voice.  How  about  bookmaking? 

Voice.  Melvin,  I  would  rather  talk  to  you  sometime  when  we're  not  on  the 
telephone  about  that. 

Voice.  All  right.    How  about  tomorrow? 

Voice.  Anytime  you  say  . 

Voice.  Well,  let  me  see,  tomorrow  is  Thursday.  Can  you  get  away  at  lunch- 
time? 

Voice.  Yes,  sure. 

Voice.  How  about  stopping  around  my  office  about  12  o'clock,  and  I'll  see  you. 

Voice.  O.  K.,  I'll  do  that. 

Voice.  Good.    Good.    Thank  you. 
•   Voice.  The  foregoing  was  Phil  Short,  May  10,  1950,  in  the  afternoon. 

Mr.  Halley.  When  did  that  conversation  take  pLace? 

Mr.  Richard.  On  May  10,  1950.  I  recorded  the  date  right  on  the 
machine,  so  I  wouldn't  forget  the  date. 

Mr.  Halley.  Was  that  transcription  an  accurate  report  of  the  con- 
versation ? 

Mr.  Richard.  It  was  an  accurate  report. 

68958— 50— pt.  1 15 


216  ORGANIZED    CRIME    IN   INTERSTATE;  COMMERCE 

Mr.  Hallet.  Did  he  mention  in  that  telephone  conversation  the 
name  of  the  person  who  gave  him  orders  when  he  was  chief  of  police  ? 

Mr.  KiCHARD.  Yes.    He  said  "Renshaw." 

Mr.  Hallet.  Who  is  Renshaw  ? 

Mr.  Richard.  Renshaw  is  Claude  N.  Renshaw.  He  is  the  city 
manager  for  the  city  of  Miami  Beach. 

Mr.  Halley.  Did  Short  come  to  your  office  on  the  next  day  ? 

Mr.  Richard.  He  did,  about  12  o'clock. 

Mr.  Hallet.  And  did  you  have  a  further  conversation  with  him? 

Mr.  Richard.  Yes ;  I  think  I  talked  to  Phil  Short  from  about  a  half 
hour  to  40  minutes. 

Mr.  Hallet.  Would  you  state  the  conversation  to  the  committee? 

Mr.  Richard.  I  recall  that  I  asked  Phil  Short  whether  it  was  pos- 
sible to  close  down  the  city  of  Miami  Beach  without  any  difficulty, 
and  he  said  there  would  be  no  difficulty  at  all ;  that  the  chief  of  police 
could  close  the  town  in  a  matter  of  hours.  And  I  asked  him  if  that 
was  so,  why  he  had  never  closed  it  down  during  the  time  he  was  chief. 
He  said  while  he  was  chief  of  police  he  closed  it  down  on  two  occa- 
sions. 

I  asked  him  what  the  occasions  were.  He  said  that  one  was  author- 
ized and  one  was  unauthorized. 

I  asked  him  if  he  would  tell  me  what  these  occasions  were.  He  said 
he  closed  the  town  immediately  after  he  got  into  office,  and  he  was 
immediately  advised  by  higher-ups  to  lay  off. 

He  indicated  that  it  was  the  city  manager  who  called  him  and  told 
him  that  he  didn't  want  the  chief  of  police  engaging  in  those  activities. 
He  said  that  he  subsequently  closed  the  town  again  on  orders  from  the 
city  manager. 

I  asked  him  how  it  was  possible  for  him  to  close  the  town  on  that 
occasion ;  exactly  what  did  he  do. 

He  said  he  called  Detective  Pat  Purdue,  the  one-man  bookie  detail 
of  the  vice  squad,  and  he  told  Pat  Purdue  to  go  out  and  close  it  down, 
and  he  closed  it  down  in  a  matter  of  hours. 

I  asked  him  how  it  was  possible  for  Pat  Purdue  to  accomplish  that, 
and  he  said  all  he  had  to  do  was  to  go  out  and  tell  the  boys  that  the 
"heat  was  on"  and  they  closed  up. 

I  asked  him  how  come  he  thinks  that  Chief  Simpson  hasn't  been  able 
to  accomplish  the  job;  that  he  has  told  me  time  and  again  that  they 
couldn't  catch  these  fellows,  and  why  is  it  that  Pat  Purdue  finds  it  so 
difficult  catching  people  in  the  hotels,  in  bookie  establishments,  when 
he  was  able  to  close  the  town,  and  he  said  he  was  an  honest  cop  when 
he  was  chief  of  police,  and  he  knew  that  unless  he  followed  orders  that 
he  was  going  to  lose  his  job ;  that  he  thinks  that  City  Manager  Renshaw 
is  also  an  honest  city  manager,  but  in  order  to  keep  his  job  he  realizes 
he  nmst  do  whatever  four  councilmen  tell  him  to. 

We  talked  further  about  the  Club  Collins  raid  at  some  length.  He 
gave  me  a  detailed  report  on  it.  I  don't  know  if  it  would  serve  any 
useful  purpose  to  the  committee  if  I  gave  you  the  report.  I  can  tell 
you  what  happened  in  that  raid. 

Mr.  Halley.  Would  you  sununarize  it? 

Mr.  RiciLVHD.  He  said  he  made  tliis  raid  without  the  autliority  of 
the  chief  of  police  and  without  the  knowledge  of  the  chief  of  police; 
that  he  took  a  group  of  men  who  were  lower  in  rank  than  he  was, 


ORGANIZED    CRIME!  IN   INTERSTATE   COMMERCE  217 

and  ordered  them  to  meet  liim  one  nio:lit  at  the  cTolf-drivin<»:  rano;e  on 
Washington  Avenue,  near,  well,  it's  near  Dade  Boulevard  on  Miami 
Beach. 

He  said  that  the  only  policeman  that  he  confided  in  was  an  officer 
on  the  beat  named  Raskin,  and  he  said  the  reason  he  confided  in  Raskin 
was  because  Raskin  was  acquainted  with  the  territory  and  was  able 
to  advise  him  what  should  be  done,  and  Raskin  recommended  that 
the  time  of  the  raid  should  be  in  the  vicinity  of  11  o'clock  at  night; 
that  that  was  the  time  when  most  of  the  racketeers  w^ere  in  the 
vicinity. 

He  said  he  proceeded  with  these  men  at  about  that  hour  to  the 
Club  Collins,  and  when  he  got  there  I  said  to  him,  "Did  you  take  a 
search  warrant?" 

He  said,  "No;  I  stopped  at  the  city  shop  and  picked  up  a  sledge 
hammer." 

He  said  that  the  Club  Collins  had  a  solid-steel  door  and  when  he 
got  up  to  the  elevator  door  the  door  was  wide  open.  He  said  that 
the  i^eople  wdiom  he  ordinarily  expected  to  be  hanging  out  there  were 
all  gone,  and  there  was  a  group  of  wdiat  he  thought  to  be  "plants" 
sitting  in  the  various  seats  around  the  tables. 

They  were  holding  cards,  but  he  said  that  from  the  fashion  ir 
wdiich  they  were  holding  them  they  obviously  w^eren't  playing  any 
particular  game  of  cards.  They  were  waiting  for  Phil  Short  and 
party  to  arrive,  and  they  were  looking  over  their  cards. 

He  came  in  there  and  there  was  nothing  going  on  that  would 
w^arrant  making  an  arrest. 

]\Ir.  Halley.  Was  there  any  further  conversation  about  that  matter  ? 

Mr.  Richard.  No;  there  VA^asn't.  That  is  all  he  told  me  about  the 
Collins  Club,  the  Club  Collins  raid. 

Mr.  Halley.  What  else  did  you  talk  with  Phil  Short  about  on 
that  occasion  ? 

Mr.  Richard.  I  don't  recall.  There  w^as  a  lot  of  small  talk  and 
conversation,  but  basically  what  I  w^as  trying  to  find  out  from  him 
was  who  gave  orders  to  keep  the  town  closed  and  why  it  couldn't  be 
closed,  and  I  think  I  have  given  you  a  good  summary  of  that  con- 
versation. 

Mr.  Halley.  Did  you  make  a  study  of  certain  real-estate  transac- 
tions in  the  Miami  Beach  area? 

Mr.  Richard.  Yes.  It  was  about  4  or  5  years  ago  that  I  became 
curious,  because  I  observed  in  the  newspapers  that  members  of  the 
S.  &  G.  Syndicate  were  purchasing  a  considerable  amount  of  real 
estate  in  the  Indian  Creek  area,  wdiat  is  commonly  known  at  Miami 
Beach  as  "Millionaires'  Row,"  between  Forty-fourth  Street  and 
Fifty-ninth  Street. 

At  that  time  we  had  a  committee,  the  junior  chamber  of  commerce, 
that  was  created  at  my  instance,  a  law-enforcement  committee.  I 
proposed  that  this  committee  investigate  the  ownership  of  those  par- 
cels of  land. 

The  committee  worked  with  me  for  a  period  of  time,  and  then 
because  I  could  give  no  reason  for  doing  what  I  was  doing — and  I 
had  no  reason  at  the  time ;  I  didn't  know  what  I  was  looking  for — they 
abandoned  the  project,  and  I  proceeded  to  complete  it  myself. 

I  w^orked  many  hours  at  the  courthouse,  and  finally  developed  the 
titles  to  every  piece  of  property  in  that  Indian  Creek  area.     After  I 


218  ORGANIZED    CRIME    IN   INTEKSTATE,   COMMERCE 

had  all  the  titles  I  didn't  really  know  what  to  do  with  them.  I  was  in 
Mr.  Ford's  office  one  day.  It's  in  the  circuit  court  offices,  the  clerk's 
office  where  the  records  are.  I  asked  Mr.  Ford  if  he  had  a  book  indi- 
cating the  places  where  the  deeds  are  returned  and,  also,  if  he  had  a 
book  which  would  show  me  where  tax  bills  are  sent. 

I  realized  that  when  an  attorney  closes  a  real-estate  deal  he  custo- 
marily has  the  deed  returned  to  his  office,  and  I  was  curious  to  know 
who  the  attorney  was,  who  might  be  representing  the  people  in  these 
transactions. 

He  said  he  iiad  such  a  book.  I  checked  through  it,  and  I  found  the 
name  of  the  attorney  who  was  representing  the  members  of  the  syndi- 
cate who  were  purchasing  property  there,  and  I  found  some  other  in- 
teresting information  in  the  return  of  those  tax  bills  to  various  people. 

I  be M eve  I  gave  you  a  letter  that  T  sent  to  Mr.  Taylor. 

Mr.  Halley.  How  did  you  happen  to  write  the  letter  ? 

Mr.  Richard.  I  wrote  this  letter  to  Robert  Taylor  in  an  effort  to 
take  some  action  in  connection  with  law  enforcement. 

Mr.  Halley.  Who  is  Mr.  Taylor? 

Mr.  Richard.  Mr.  Taylor  is  the  county  solicitor  for  this  area. 

Mr.  Halley.  And  under  what  circumstances  did  you  write  to  him  ? 
Had  you  talked  to  him  previously? 

Mr.  Richard.  Yes.  I  talked  to  Mr.  Taylor  on  several  occasions  on 
the  telephone.  I  attempted  to  make  an  appointment  with  him.  On 
one  occasion  I  broke  an  appointment  with  him,  and  on  another  occasion 
he  told  me  he  wasn't  able  to  see  me.     We  weren't  able  to  get  together. 

I  wrote  the  letter  because  I  didn't  really  think  that  seeing  Mr.  Taylor 
was  going  to  accomplish  anything.  I  thought  perhaps  a  letter  of  this 
kind,  if  published,  would  stimulate  him  to  take  some  action  on  the  law- 
enforcement  scene. 

Mr.  Haltj^.y.  What  is  the  date  of  the  letter? 

Mr.  Richard.  June  15,  1950. 

Mr.  Halley.  Using  the  letter  to  refresh  your  recollection  about  the 
real-estate  transactions,  will  you  go  ahead  and  tell  the  committee 
what  you  found  ? 

Mr.  Richard.  I  might  comment  that  one  of  the  things  that  prompted 
the  letter  was  the  activities  of  this  committee,  Senator  Kef  auver's  com- 
mittee. I  made  reference  to  it  here,  and  particularly  the  action  taken 
by  Mr.  Hogan  in  New  York. 

I  called  attention  to  the  fact  that  such  action  can  be  accomplished  by 
the  prosecuting  attorney  if  he  wants  to  accomplish  the  job. 

Tlie  excerpt  that  I  would  like  to  read  to  you  refers  to  this  property 
I  cited  in  this  letter : 

I  further  recommend  that  you  might  possibly  procure  some  valuable  informa- 
tion from  your  brother-in-law,  Ben  Sheparcl.  who  is  the  city  attorney  in  the  city 
of  Miami  lieach.  He  has  apparently  had  considerable  dealin.sjis  with  the  S.  &  G. 
Syndicate  members  and  might  be  able  to  give  your  office  a  great  deal  of  valuable 
information  ccncerning  their  operations.  To  illustrate  what  I  have  reference 
to,  I  quote  from  a  portion  of  an  instrument  filed  by  me  on  May  30,  1947,  in  a 
cause  pend'ng  in  the  circuit  court  of  Dade  County,  Fla.,  in  chancery  No.  96153-F. 
It  should  be  borne  in  mind,  in  examining  the  quotation,  that  it  is  customary 
practice,  as  you  well  know,  for  attorneys,  in  the  representiition  of  clients  pur- 
chasing real  estate,  to  have  the  deeds  returned  from  the  recording  department 
to  their  own  offices. 

The  excerpt  from  the  pleading  referred  to  reads  as  follows: 


ORGANIZED    CRIME    IN   INTERSTATE.   COMMERCE  219 

Before  I  tell  you  that,  people  who  own  property  in  that  area  have 
been  seekinfT  to  have  it  rezoned  through  the  courts. 

It  is  significant  to  note  that  the  fee-simple  titles  to  many  of  the  lots  in  that 
area  are  vested  in  the  names  of  members  of  the  syndicate  hereinabove  referred 
to  and  are  vested  in  the  names  of  persons  who  in  some  way  are  directly  asso- 
ciated with  the  city  hall  in  IMiami  Beach,  Fla.  Those  fee-simple  ownerships 
are  set  forth  in  the  fullowiiii;-  list  together  with  other  significant  information 
showing  to  whom  the  original  deeds  were  returned  and  to  whom  tax  bills  are 
sent: 

Amended  plat,  first  ocean-front  subdivision  : 

Lot  No.  4,  the  fee-simple  owner :  Virginia  Levitt  and  Samuel  Fried- 
man. The  deed  was  returned  to  Ben  Shepard,  who,  I  explained,  was 
city  attorne}'.  The  tax  bills  were  sent  to  Virginia  Levitt  and  Samuel 
Friedman, 

Lot.  No.  5,  the  fee-simple  owner :  Harold  Salvey.  The  deed  was  re- 
turned to  Ben  Shepard.    The  tax  bills  were  sent  to  Harold  Salvey. 

Lot  No.  13,  in  the  north  half  of  lot  12,  the  fee-simple  owners :  Samuel 
P.  Cohen  and  Charles  Friedman.  The  deed  was  returned  to  Samuel 
Cohen  in  care  of  Sam  Kay.  The  tax  bills  were  sent  to  Samuel  P. 
Cohen  and  Charles  Friedman,  in  care  of  Sam  Kay. 

Lot  No.  14,  the  fee-simple  owner:  Ocean  Front  Apartments,  Inc. 
The  deed  was  returned  to  J.  N.  Morris,  and  the  tax  bills  were  sent 
to  Ocean  Front  Apartments,  Inc.,  in  care  of  Sam  Kay. 

Lot  No.  23,  the  fee-simple  owner:  Harold  Salvey.  The  deed  was 
returned  to  Copeland,  Therrel  &  Baisden.  The  tax  bills  were  sent  to 
Harold  Salvey. 

Lot  No.  24,  the  fee-simple  owner:  Charles  Friedman  and  Jules 
Levitt.  The  deed  was  returned  to  Copeland,  Therrel  &  Baisden,  and 
the  tax  bills  sent  to  Charles  Friedman  and  Jules  Levitt. 

Lot  No.  243,  the  fee-simple  owner :  Virginia  Levitt.  The  deed  was 
returned  to  Virginia  Levitt,  and  the  tax  bills  were  sent  to  Virginia 
Levitt. 

Lot  No.  337,  the  fee-simple  owner :  Jules  Levitt  and  Charles  Fried- 
man. The  deed  was  returned  to  Ben  Shepard.  The  tax  bills  were 
sent  to  Jules  Levitt  and  Charles  Friedman. 

The  amended  plat  of  the  second  ocean-front  subdivision  is  an 
area  in  the  same  stretch  of  ground  also  known  as  Millionaires'  Row. 

Lots  Nos.  1  and  2,  the  fee-simple  owner  is  William  Burbridge,  a 
member  of  the  city  council.  The  deed  was  returned  to  Copeland, 
Therrel  &  Baisden,  and  the  tax  bills  were  sent  to  Ben  Shepard. 

Lots  4,  5,  and  6 :  The  fee-simple  owner  is  the  Ray  Corp.,  and  the 
deed  was  returned  to  Copeland,  Therrel  &  Baisden.  The  tax  bills 
were  sent  to  William  Burbridge. 

The  pleading  went  on  to  say : 

It  is  significant  to  note  that  in  the  case  of  the  members  of  the  syndicate 
the  deeds  in  some  instances  were  returned  to  Ben  Sliepard ;  that  Ben  Shepard  is 
the  city  attorney  for  the  city  of  Miami  Beach  and  is  the  attorney  of  record  for 
the  city  of  Miam-i  Beach,  the  defendant  in  this  cause  of  action.  It  is  further 
significant  to  observe  that  Ray  Corp.,  hereinabove  mentioned,  in  its  last  report 
filed  with  the  Secretary  of  State  of  the  State  of  Florida  designated  as  its  place 
of  business  or  domicile  for  service  of  process  Il.SO  Washington  Avenue,  Miami 
Beach,  Fla.,  which  is  the  city  hall  at  Miami  Beach,  Fla. ;  that  the  officers  of 
the  corporation 

The  Chairman.  Wait  iust  a  moment.  The  Ray  Corp.:  is  that 
R-a-y?  ^  i   ' 


220  ORGANIZED    CRIME    IN   INTERSTATE   COMMERCE 

Mr.  KiciiARD.  That  is  R-a-y,  sir.    Shall  I  proceed? 

The  Chairman.  Go  ahead. 

Mr.  EiciiARD  (continuing  to  quote)  : 

that  the  officers  of  tlie  coiiioration  in  the  said  last  report  were  shown  as  Farber 
Burbridge,  president ;  William  Burbridge,  secretary  and  treasurer,  both  in  care 
of  Ben  Shepard,  attorney,  City  Hall,  Miami,  Beach,  Fla.,  and  the  directors  of 
the  corpoi-ation  were  shown  as  Farber  Burbridge,  William  Burbridge,  and  Ben 
Shepard,  attorney,  1130  Washington  Avenue,  City  Hall,  Miami  Beach  39,  Fla. ; 
that  the  said  William  Burbridge  named  as  an  officer  and  director  of  the  said 
corporation  is  a  member  of  the  Miam'i  Beach  City  Council.  With  respect  to 
lots  13  and  the  north  one-half  of  lot  12  of  amended  plat,  first  ocean-front  sub- 
division, aforesaid,  the  fee-simple  owners,  care  of  S.  Kay,  420  Lincoln  Road, 
Miami  Beach  39,  Fla. ;  that  the  said  S.  Kay  owns  considerable  property  as  shown 
hereinabove  in  the  name  of  Sam  Kay  and  is  an  officer  and  director  in  Ocean 
Front  Apartments,  Inc.,  a  Florida  corporation,  which  latter  corporation  is  fee 
simple  title  holder  of  certain  lots  as  shown  hereinabove.  Virginia  Levitt  is 
the  wife  of  Jules  Levitt. 

And  that  was  the  end  of  the  pleading. 

The  Chairman.  Mr.  Richard,  will  you  make  a  copy  of  this  letter  as 
an  exhibit  to  3^our  testimony  and  refer  to  it  in  any  way  you  wish? 

Mr.  Richard.  Do  you  want  the  entire  letter? 

The  Chairman.  Yes,  sir. 

(The  letter  referred  to  was  marked  "Exhibit  No.  1"20"'  and  appears 
in  the  appendix  on  p.  750.) 

Mr.  Halley.  Would  you  explain  whether  there  was  a  matter  petid- 
ing  at  that  time  involving  an  effort  to  re-zone  certain  parts  of  Miami 
Beach  ? 

Mr.  Richard.  Yes.  Several  suits  were  pending,  I  believe.  This 
pleading  that  I  filed  was  one  that  I  filed  in  one  of  those  suits  and  in 
which  I  asked  the  circuit  court  to  oust  Mr.  Ben  Shepard  as  attorney 
for  the  city  of  Miami  Beach,  on  the  grounds  that  he  represented  per- 
sons who  were  interested  in  the  re-zoning  and  apparently  had  an 
interest  of  some  kind  himself,  as  shown  by  the  deeds. 

Mr.  Halley.  The  re-zoning  involved  the  property  you  have  been 
talking  about  ? 

Mr.  Richard.  It  involved  property  in  that  stretch,  all  of  which  is 
estate  property.  That  is  the  same  property  that  Mr.  Sullivan  in  his 
testimony  made  reference  to. 

Mr.  Halley.  And  the  city  of  Miami  Beach  was  opposed  to  the  re- 
zoning  ? 

Mr.  Richard.  Yes.  The  city  of  Miami  Beach  was  defendant  in  the 
case. 

Mr.  Halley.  And  the  attorney  for  the  city  of  Miami  Beach  was  the 
same  Ben  Shepard ;  is  that  correct  ? 

Mr.  Richard.  Yes,  he  was. 

Mr.  Halley.  The  same  one  whom  you  find  representing  or  at  least, 
depending  upon  the  deed,  the  attorney  representing  some  of  these 
cases,  the  attorney  to  whom  the  deed  should  be  sent  in  these  cases? 

Mr.  Richard.  And  as  director,  I  believe,  and  officer  of  one  of  those 
corporations. 

The  Chairman.  AVliich  corporation  was  that? 

Mr.  Richard.  That  was  William  Burbridge's  corporation.  That 
was  the  Ray  Corp. 

The  Chairman.  AYhat  business  was  tlie  Ray  Corp.  engaged  in  ? 


ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE  221 

Mr.  Richard.  As  far  as  I  know — I  don't  know,  really.  I  doubt  if 
it  was  in  any  business.  It  was  probably  created  for  the  purpose  of 
holding  this  property. 

Mr.  Halley.  After  you  were  elected  to  the  city  council  did  you 
have  any  discussions  with  Jules  Levitt? 

Mr.  Richard.  Jules  Levitt  talked  to  me  prior  to  my  election  to  the 
city  council  and  subsequent  to  my  election  to  the  city  council. 

Mr.  Halley.  Was  there  any  discussion  about  your  campaign  ex- 
penses 'i 

Mr.  Richard.  Yes.  Immediately  after  my  campaign  in  which  I 
ran  for  the  council,  in  1947,  Jules  Levitt  met  me  one  day  at  the  city 
hall.  There  were  some  people  present  whom  I  did  not  know,  and 
I  don't  think  he  knew  them  either;  they  were  strangers.  (I  say  that 
because  since  I  have  made  reference  to  this  story  some  man  called  me 
some  time  ago  and  told  me  he  was  present  and  heard  the  remarks  that 
passed  between  us.) 

Mr.  Levitt  told  me  that  he  had  a  lot  of  admiration  for  the  campaign 
I  ran,  that  he  thought  I  had  done  a  good  job.  He  said  that  I  didn't 
tell  the  truth  when  I  stood  on  the  lot  and  said  that  he  had  to  hear  me 
when  he  came  out  of  his  home  at  night,  that  he  came  out  at  night  and 
stood  in  the  shadows  and  listened  to  my  speeches.  He  said  the  only 
thing  he  resented  was  the  fact  that  his  sons  had  very  fine  grades  at 
college  and  he  resented  the  things  I  said  about  their  father. 

He  said  I  would  be  the  next  mayor  of  Miami  Beach,  and  that  he  and 
the  S.  &  G.  Syndicate  would  support  me  handsomely. 
.  He  told  me  that  he  was  going  to  make  the  first  contribution  to  my 
next  campaign  and  that  he  would  give  me  personally  out  of  his  pocket 
the  total  amount  that  I  had  spent  on  my  campaign  for  office  that  year, 
1947. 

He  asked  me  how  much  I  had  spent.  I  told  him,  "At  least  $2,500." 
He  said  that  the  first  contribution  to  my  campaign  would  be  $2,500 
and  the  S.  &  G.  Syndicate  would  support  me  in  addition  to  that. 

He  told  me  that  he  had  confidence  in  me  and  was  willing  to  take 
me  around  and  show  me  the  entire  syndicate  operations,  that  he  would 
show  me  their  main  office  and  branch  offices,  that  he  would  show  me 
how  it  operated  and  that  he  would  convince  me  that  they  were  an 
important  asset  to  the  community,  that  they  served  to  keep  out  a  lot 
of  the  ^I'ew  York  racketeers  who  would  otherwise  be  in  the  areas  not 
controlled  by  the  local  boys. 

He  told  me  that  I  w^as  tired  and  ought  to  go  on  a  vacation.  He 
recommended  that  I  visit  a  farm  that  he  had  in  North  Carolina.  He 
said  that  he  would  arrange  to  have  plane  tickets  for  me.  I  told  him  I 
couldn't  possibly  consider  leaving  the  city  of  Miami  Beach  because 
I  had  spent  30  to  40  days  in  my  campaign  and  I  hadn't  practiced  law, 
and  I  had  nothing  to  make  a  living  by. 

He  told  me  that  in  North  Carolina  I  would  earn  legitimately  in  my 
practice  of  law  as  much  as  I  would  have  earned  had  I  remained  here. 

I  told  him  that  I  had  a  wife  and  two  children  and  couldn't  afford 
to  leave.  He  said  that  plane  tickets  would  be  available  for  my  entire 
family,  and  we  could  stay  as  long  as  we  liked.  He  said  there  was  a 
lake  there  and  horses  and  we  would  have  a  wonderful  time. 

I  rejected  his  invitation. 

'Mr.  Halley.  Was  there  any  further  discussion  about  how  you  would 
not  lose  money  while  you  were  away  on  vacation  ? 


222  ORGANIZED    CRIME    IN   INTEKSTATEi   COMMERCE 

Mr,  Richard.  He  said  that  in  my  law  practice  I  would  earn  as  much 
money  as  I  would  have  earned  had  I  been  in  the  oiRce  practicing  law. 
I  did  not  engage  in  any  discussion  with  him  as  to  how  this  was  to  be 
accomplished. 

Mr.  Halley,  Was  there  any  discussion  as  to  the  possibility  of  mak- 
ing profitable  business  transactions? 

Mr.  Richard.  No.  I  think  in  a  conversation  with  3'ou  I  mentioned 
that,  but  Jules  Levitt  was  not  the  man  who  made  that  reference  to  me. 
I  did  have  a  conversation  with  Jules  Levitt  on  two  other  occasions. 
On  one  occasion  I  met  him  in  front  of  the  city  hall.  I  had  been 
pushing  for  some  four- wall  handball  courts  in  Flamingo  Park,  and  I 
tried  to  get  the  council  to  put  them  in.  I  had  played  handball  in  the 
Navy,  and  I  thought  it  was  a  game  that  would  interest  a  lot  of  the 
citizens  of  the  community.  All  of  the  members  of  the  council  appar- 
ently were  reluctant  to  do  it  and  consequently  they  paid  little,  if  any, 
attention  to  my  request.  I  met  him  in  front  of  the  city  hall  and  we 
discussed  something  about  some  four- wall  handball  courts  in  Flamingo 
Park.  I  told  him  that  I  merely  had  mentioned  it  to  the  city  council, 
telling  them  that  I  thought  four  or  five  thousand  dollars  would  be 
adequate  for  that  purpose,  and  he  said,  "I  think  it  is  a  good  idea  and  I 
will  help  you."  I  said,  "How  can  you  help  me,"  and  he  said,  "I  will 
do  what  I  can."  So  the  next  time  the  city  council  met  it  was  taken  up 
and  apparently  without  any  request  from  anybody — I  don't  know 
whether  Jules  Levitt  had  any  influence  in  accomplishing  it  or  not, 
but  I  do  know  that  they  appropriated  a  considerable  amount  of  money, 
something  like  $32,000,  and  they  built  very  elaborate  four-wall  hand- 
ball courts  in  Flamingo  Park.  They  were  built  of  solid  concrete 
walls,  concrete  block  with  glass  in  them  and  very  fancy  outside ;  they 
are  very  beautiful  courts  and  they  have  served  the  city  very  well. 

Mr.  Halley.  Mr.  Jules  Levitt  is  a  member  of  the  S.  &  G.  Syndicate? 

Mr.  Richard.  So  I  understand.  He  did  call  me  on  one  occasion 
after  my  election,  I  am  pretty  sure  that  it  was  subsequent  to  my  elec- 
tion, and  he  merely  askecl  me  if  I  would  be  willing  to  handle  the  real- 
estate  business  of  the  members  of  the  syndicate.  He  said  that  they 
had  considerable  real-estate  business  from  time  to  time,  and  he  wanted 
to  know  if  I  would  be  willing  to  handle  it  and  that  it  would  be  strictly 
on  the  level.  I  told  him  that  I  was  reluctant  to  say  that  I  would  be  will- 
ing to  handle  it.  I  hung  up  and  I  thought  about  it  for  a  little  while 
and  got  to  wondering  who  I  could  discuss  the  matter  with.  I  finally 
did  call  one  of  the  top-ranking  newspapermen  here  and  I  asked  him 
what  his  impression  was.  I  called  John  Pennekamp  of  the  Miami 
Herald,  and  he  said  that  it  was  just  an  effort  by  them  to  get  my  name 
on  a  check,  and  that  it  would  be  very  foolish  for  me  to  become  involved 
with  them  in  any  way.    I  never  did  any  real-estate  work  for  them. 

Mr.  Halley.  Did  you  ever  do  any  work  for  Jides  Levitt  or  Leo 
Levitt,  Ben  Colien  or  Sam  Cohen  or  any  of  the  members  of  the  S.  &  G. 
Syndicate  ?    Did  you  ever  receive  any  compensation  from  any  of  them  ? 

INTr.  Richard.  No,  sir. 

Mr.  Halley.  Did  they  ever  support  you  in  your  election  campaigns? 

Mr.  RicriARD.  No,  sir.  All  of  the  money  that  we  took  was  very 
carefully  examined  and  every  contribution  went  into  a  bank  account 
and  all  moneys  were  pxpended  by  check. 

The  Chairman.  You  turned  down  that  offer  that  was  made  to  ycrii  ? 

Mr.  Richard.  Yes. 


ORGANIZED    CRIME    IN   INTERSTATE   COMMERCE  223 

]\Ir.  Hatxet.  Did  you  ever  have  a  conversation  with  Ben  Cohen 
about  tlie  S.  &  G.  Syndicate  ? 

Mr.  Richard.  Yes,  I  did.  It  was  in  what  is  now  the  Piado  Restau- 
rant, but  at  that  time  it  was  called  Murray's.  I  cannot  place  the  date. 
1  don't  know  whether  it  was  prior  to  the  election  or  after  the  election, 
but  I  am  sure  Mr.  Cohen  remembers.  I  went  in  the  restaurant  and 
sat  down  alone  for  lunch,  and  in  a  few  minutes  later,  by  accident  pos- 
sil)ly,  Mr.  Snedi^ar,  who  was  a  city  councilman  at  one  time  and  who 
is  now  a  member  of  the  county  commission,  walked  in  and  saw  me 
at  the  table  and  asked  to  sit  down  and  have  lunch  with  me.  I  said 
I  had  no  objection.  A  few  minutes  later  Ben  Cohen  walked  in  and 
he  asked  me  the  same  question  and  he  sat  down  at  the  table,  too.  I  had 
never  seen  either  of  these  men  in  this  place  before,  althoug;h  I  had 
been  eating  there  regridarly  because  the  place  was  immediately  across 
the  street  from  my  office. 

After  we  sat  there  for  a  few  minutes  Mr.  Cohen  opened  the  con- 
versation with  a  casual  reference  to  the  S.  &  G.  boys.  He  told  me 
that  if  I  fTot  to  know  them  I  would  realize  that  they  are  fine  boys,  fine 
fellows  and  "that  they  are  the  type  of  people  you  would  be  proud  to 
have  in  your  home." 

We  g-ot  into  a  lengthy  discussion  and  I  told  him  that  "they  are 
I  am  sure  very  nice  and  fine  fellows  but  they  belong  in  jail  because 
they  are  violating  the  law."  I  told  him  that  in  the  course  of  my 
experience  I  had  met  some  very  fine  people  who  were  in  jail  for 
committing  crimes  and  that  they  were  very  nice  people  to  talk  to.  We 
continued  talking  back  and  fortli  and  the  argument  got  considerably 
heated  and  we  didn't  get  along  well.  The  session  finally  ended  and 
we  walked  out  to  the  curb,  out  on  the  sidewalk,  and  we  continued 
arguing.  I  realized  that  I  was  arguing  with  Mr.  Cohen  in  front 
of  people  who  were  passing  along  on  the  public  street  and  that  it 
was  very  foolish,  so  I  stopped.  I  thought  it  was  foolish  for  me  to  con- 
tinue such  discussion  with  him  out  there  on  the  public  street.  I  said, 
"Ben  Cohen,  you  are  part  and  parcel  in  this  thing;  you  are  a  part 
of  the  S.  &  G.",  and  Bennie  got  mad  and  pointed  his  finger  at  me  and 
said,  "Don't  let  me  hear  you  say  that  again.  I  am  not  part  and  parcel 
of  the  S.  &  G.  Syndicate.  I  am  an  attorney  and  I  practice  law  and 
I  have  a  right  to  represent  whoever  I  please,"  and  I  said,  "Bennie, 
I  am  surprised  because  only  30  minutes  ago  you  told  me  that  these 
men  were  people  that  I  would  be  proud  to  have  in  my  home." 

Mr.  Halley.  Did  you  ever  check  up  and  find  out  if  Ben  Cohen  ever 
represented  himself  as  a  part  of  the  S.  &  G.  in  connection  with  their 
business,  other  than  to  represent  them  as  counsel  ? 

]Mr.  Richard.  Yes.  I  have  documentary  evidence  that  he  has  repre- 
sented himself  to  be  the  attorney  for  the  S.  &  G.  Syndicate. 

]Mr.  Halley.  What  is  that  documentary  evidence  ? 

Mr.  Richard.  The  S.  &  G.  Syndicate,  after  the  local  newspapers 
reported  in  1949  that  they  had  offices  but  no  license,  went  down  and 
took  out  a  license  or  licenses,  and  these  are  photostatic  copies  of  city 
licenses.  '  This  one  here  is  for  1947-48  license,  S.  &  G.  Investment 
Co.,  422  Lincoln  Road.  The  manager  is  given  on  tlie  license  as  Leo 
Levitt  and  the  business  is  given  as  investments. 

The  1948-49  license  is  the  same  thing  with  the  manager  again  given 
as  Leo  Levitt. 


224  ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE 

The  1949-50  license  is  of  the  same  type,  with  the  names  shown  as 
Sam  Friedman  and  Leo  Levitt. 

This  document  is  a  photostatic  copy  of  a  card  attached  to  the 
application  for  the  original  license  in  1947  which  was  signed  Leo 
Levitt,  by  Ben  Cohen,  attorney.  It  is  an  application  of  the  S.  &  G. 
and  on  the  reverse  side  it  was  sworn  to  by  Ben  Cohen  before  a  notary 
public,  in  which  he  states  that  the  contents  on  the  reverse  is  true. 

The  Chairman.  Let  these  be  filed  as  an  exhibit  to  your  testimony. 
(Photostats  of  1947-48,  1948-49,  and  1949-50  licenses  were  marked 
"Exhibit  Nos.  121,  122,  and  123,"  respectively.  Photostat  of  card  re- 
ferred to  was  marked  "Exhibit  No.  124."  These  exhibits  appear  in  the 
appendix  on  pp.  753-754.) 

Mr.  Halley.  Was  there  a  suggestion  made  before  the  City  Council 
of  Miami  Beach  recently  that  the  city  hall  be  moved  ? 

Mr.  Richard.  No.  There  was  a  letter  read  by  the  city  clerk.  We 
had  been  looking  for  additional  space  because  the  city  hall  is  not 
quite  large  enough  to  accommodate  our  offices.  The  city  clerk  read 
a  letter  from  some  person  who  wasn't  named,  but  in  the  letter  it  was 
stated  that  space  was  available  on  an  entire  floor  of  a  building  which 
could  be  used  for  operations  of  the  city  hall.  This  letter  concerned 
the  rental  of  this  space  by  the  city.  I  asked  what  the  address  was 
and  he  said  Fourteenth  Street  and  Washington  Avenue,  and  I 
inquired  around  and  found  that  it  w^as  Harry  Salvey's  building.  I 
said  tliat  I  was  very  much  surprised  that  they  would  attempt  to 
move  the  city  hall  right  into  their  own  property. 

Mr.  Halley.  Who  is  Harry  Salvey  'i 

Mr.  Richard.  He  is  reputed  to  be  a  member  of  the  S.  &  G.  Syndicate. 

Mr.  Halley.  Is  there  anything  else  you  would  like  to  say  to  the 
committee  ? 

Mr.  Richard.  I  feel  very  strongly  about  the  situation  that  exists 
here.  I  think  we  have  to  do  a  big  job  locally.  I  think  this  commit- 
tee is  doing  a  splendid  job  and  I  think  the  crime  commission  should 
be  commended  for  the  wonderful  job  it  has  done,  but  I  think  the  juris- 
diction of  this  committee  is  not  going  to  reach  far  enough  because  of 
its  inability  to  go  into  the  local  situation  completely  and  fully.  I 
think  we  need  principally  a  program  of  education  of  the  people  and 
thus  avoid  this  propaganda  that  has  been  going  on  over  there  l)v  these 
public  relations  men  of  this  gambling  syndicate  to  the  effect  that 
gambling  is  essential  to  the  economy  of  the  city,  which  is  a  pretty 
tough  thing  to  overcome. 

The  Chairman.  How  old  are  you,  Mr.  Richard  ? 

Mr.  Richard.  Thirty-eight. 

The  Chairman.  Where  did  you  go  to  school  ? 

Mr.  Richard.  I  went  to  school  at  the  New  York  University  and 
the  Florida  University. 

The  Chairman.  Where  were  you  born? 

Mr.  Richard.  I  was  boi-n  in  Brooklyn,  N.  Y. 

The  Chairman.  Did  you  serve  in  the  Navy  ? 

Mr.  Richard.  I  was  in  the  Navy  21/2  years. 

The  Chairman.  How  long  have  you  practiced  law  at  Miami  Beach? 

Mr.  Richard.  Since  1934,  with  the  exception  of  the  time  I  was  in  the 
Navy. 

The  Chairman.  As  I  understand  it,  Mr.  Richard,  you  lost  your 
1947  campaign? 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  225 

Mr.  Richard.  Yes,  I  did. 

The  Chairman.  You  won  in  1949  ? 

Mr.  EicHARD.  Yes,  sir. 

The  Chairman.  Did  the  opposition  of  the  S.  &  G.  and  criminal 
elements  of  Miami  Beach  defeat  you  in  1947? 

Mr,  Richard.  Yes.  I  ran  a  campaign  similar  to  the  one  I  ran  in 
1947.  Contributions  came  to  the  amount  of  almost  $5,000  and  we 
had  a  campaign  headquarters,  which  in  that  respect  was  different 
from  the  first  campaign. 

The  Chairman.  Did  you  win  ? 

Mr.  Richard.  Yes, 

The  Chairman.  And  you  didn't  have  them  on  your  side  ? 

Mr.  Richard.  No,  sir. 

The  Chairman.  Did  you  get  a  good  majority? 

Mr.  Richard.  Yes.     I  earned  a  4-year  term. 

The  Chairman.  So  the  idea  that  one  cannot  be  elected  without 
their  help  and  support  has  been  disproven? 

Mr.  Richard.  Yes,  but  it  was  a  tough  job. 

The  Chairman,  Was  there  any  recall  petition  brought  against 
you? 

Mr.  Richard.  Yes,  there  is  a  recall  petition  pending  now  to  oust  me 
from  office,  and  that  litigation  is  pending  in  the  Supreme  Court  of 
Florida  at  the  present  time,  to  throw  out  the  recall. 

The  Chairman.  Who  sponsored  the  recall  ? 

Mr.  Richard.  The  recall  was  sponsored  by  a  group  of  people  headed 
presumably  by  a  man  by  the  name  of  Harry  Plissner,  but  I  have  rea- 
son to  believe  that  the  man  who  was  really  the  front  man  is  a  man  by 
the  name  of  Charles  Gunches  who  has  since  been  arrested  by  the  FBI 
and  is  being  held  in  California. 

The  Chairman.  What  was  he  arrested  for? 

Mr.  Richard.  On  some  kind  of  an  embezzlement  charge.  Accord- 
ing to  the  newspaper  article  he  said  that  he  spent  the  money  betting 
on  horses  and  baseball  games. 

The  Chairman.  He  was  the  chief  sponsor  of  the  recall  petition  ? 

Mr.  Richard.  That  is  what  I  have  been  told,  Plissner,  who  was 
in  the  front  of  this  recall  movement,  has  been  indicted  by  the  grand 
jury. 

The  Chairman,  In  your  opinion  was  the  S.  &  G.  back  of  the  recall 
petition  ? 

Mr.  Richard.  It  is  my  opinion  that  they  supported  it,  and  I  estimate 
that  $150,000  was  spent  on  the  recall. 

Tlie  Chairman.  What  charge  did  they  place  against  you  in  the 
recall  petition? 

Mr.  Richard.  The  charge  was  that  I  pursued  activities  that  were 
inimical  to  the  best  interests  of  Miami  Beach  and  its  citizens,  but  they 
didn't  say  which  citizens. 

The  Chairman.  What  activities  were  they? 

Mr.  Richard.  They  didn't  name  any  activities.  That  was  the  only 
charge  in  the  recall  affidavit. 

The  Chairman.  Who  is  Mr.  Plissner? 

Mr.  Richard.  Plissner  is  a  man  who  was  active  in  my  campaign  and 
who  helped  me  considerably.  Since  the  election  he  has  been  indicted 
by  the  grand  jury  on  a  bribery  charge.  The  bribery  charge  was 
thrown  out  by  Judge  Holt  on  the  ground  that  I  was  the  man  who  was 


226  ORGANIZED   CfRIME    IN   INTElRSTATEi  COMMERCE 

supposed  to  have  been  bribed,  and  Judge  Holt  said  that  I  could  not 
have  been  bribed  because  what  I  was  supposed  to  be  bribed  for  I 
couldn't  do.     That  case  is  now  before  the  supreme  court. 

The  Chairman.  What  was  the  connection  of  Plissner  in  that  case? 

Mr.  Richard.  He  is  the  defendant. 

The  Chairman.  Tell  us  more  about  the  story  of  your  relationship 
with  Mr.  Plissner. 

Mr.  Richard.  I  met  Mr.  Plissner  as  a  member  of  the  junior  chamber 
of  commerce.  He  is  not  a  man  that  you  would  expect  to  be  in  the 
chamber  of  commerce,  the  junior  chamber  of  commerce,  because  he  is 
much  older  than  the  age  limit.  I  would  guess  that  he  is  about  55. 
He  appeared  at  the  junior  chamber  of  commerce  one  night  and  got  up 
on  the  floor  and  complained  about  some  specific  matter,  and,  as  usual 
and  customary  in  organizations  of  this  type,  the  president  of  the 
organization  named  him  as  a  committee  of  one  to  go  out  and  do  some- 
thing about  it.    Nobody  expected  to  hear  from  him  again. 

At  the  next  meeting,  toward  the  end  of  the  meeting,  he  got  up  and 
complained  about  the  fact  that  he  had  been  appointed  a  committee  of 
one  to  do  a  certain  thing  and  that  he  had  not  been  called  upon  to  report. 
He  got  up  and  made  an  excellent  report,  plainly  showing  that  he  had 
done  much  work  and  had  accomplished  some  good  for  the  organiza- 
tion. He  was  retired  and  apparently  had  nothing  to  do  and  was 
apparently  willing  to  give  all  of  his  time  to  civic  activities.  He  showed 
a  real  interest  in  me  and  my  activities  and  showed  a  real  desire  to  help 
me  in  my  civic  endeavors  for  the  benefit  of  Miami  Beach. 

The  Chairman.  He  was  interested  in  civic  activities  and  he  sup- 
ported you  in  your  election? 

Mr.  Richard.  Very  actively. 

The  Chairman.  Then  what  happened? 

Mr.  Richard.  After  the  election  he  showed  considerable  tempera- 
ment. He  became  angry  because  I  wanted  to  talk  to  people  on  the 
street  and  because  I  wanted  to  return  about  a  thousand  telephone  calls 
that  came  in  during  the  first  2  weeks  after  my  election.  He  said  that 
he  should  handle  the  business  for  me,  that  a  politician  should  have 
someone  to  handle  things  for  him.  We  had  some  very  terrific  argu- 
ments during  the  first  2  weeks  after  the  election.  He  told  me  that  I 
would  have  to  make  deals.  He  said  that  if  I  wanted  to  accomplish 
any  of  my  campaign  promises  that  I  would  have  to  have  a  go-between, 
and  he  said  that  the  best  man  would  be  Will  Burbridge  because  he 
had  had  considerable  experience  and  knew  his  way  around,  and  I  told 
him  that  I  would  not  do  anything  of  the  kind.  He  finally  worked 
himself  up  to  the  point  where  he  suggested  deals.  I  want  you  to 
know  that  this  happened  over  a  period  of  2  weeks ;  it  ha]:)pened  every 
night  at  my  home  and  every  day  in  my  office.  This  final  proposition 
that  he  made  to  me  was  one  where  he  came  to  me  and  told  me  that 
I  had  to  hear  him  out  and  let  him  finish  without  my  saying  anything. 
He  said  that  the  arrangement  was  to  permit  the  S  and  G  syndicate  to 
run  without  any  effort  on  my  part  to  stop  them ;  he  said  that  he  realized 
that  the  newspa]:)ers  woidd  condemn  me  for  it  and  for  not  keeping  my 
campaign  promises. 

He  told  me  that  there  would  be  no  objection  to  my  getting  up  in 
the  council  meetings  and  denouncing  the  S  and  G  and  tlie  racketeers; 
and  I  coukl  go  to  the  chief  of  police  publicly  and  condemn  him;  that 
I  coukl  go  to  the  city  manager  publicly  and  condemn  him,  but  that 


ORGANIZED    CRIME    IN   INTERSTATE   COMMERCE  227 

I  could  not  do  it  privately,  but  that  if  I  did  it  publicly  they  would 
understand  the  reason  for  it.  He  said  that  I  could  also  arrange  raids 
to  be  staged  in  scout  cars,  that  I  could  have  the  photographers  there 
and  that  j^ictures  would  be  taken  and  that  important  people  would 
be  arrested.  He  said  that  it  was  none  of  my  business  what  happened 
after  the  arrests  were  made.  He  said  that  if  I  did  these  things  the 
people  would  say  that  I  had  done  my  duty.  He  said  that  I  could  even 
condemn  the  prosecuting  officers  for  failing  to  do  their  duty. 

The  final  deal  he  made  to  me  was  that  he  was  going  to  handle  the 
punchboard  deal  in  the  city  of  Miami  Beach  and  that  one-fifth  of 
any  income  would  be  paid  to  me.  He  said  that  it  would  be  paid  to 
me  through  legitimate  channels.  He  said  that  he  would  make  arrange- 
ments so  that  nobody  could  ever  prove  that  any  of  this  money  was 
paid  to  me. 
The  Chairman.  Who  said  that  ? 

Mr.  KiCHARD.  Plissner.  He  said  that  he  had  made  these  arrange- 
ments and  that  if  I  went  along  I  could  probably  stay  in  the  city 
council  forever  because  they  controlled  the  votes  and  the  people  would 
think  that  I  had  done  my  duty  in  accordance  with  my  campaign 
j)romises  and  so  forth. 

The  Chairman.  What  did  you  do  about  it? 

Mr.  Richard.  I  had  a  very  vicious  argument  with  him,  and  he  left 
on  that  occasion  very  angry.  I  think  I  had  better  tell  you  the  rest 
of  the  story. 

The  Chairman.  Yes,  go  ahead  and  tell  us. 

Mr.  Richard.  Well,  I  knew  Mr.  Plissner  quite  well  and  we  were 
still  friendly,  and  I  told  Mr.  Plissner  I  was  very  much  concerned  with 
the  difficulties  I  was  running  up  against  and  that  I  didn't  know  my 
way  around  politically;  that  I  didn't  know  in  what  direction  to  go 
or  in  what  course  I  should  go,  and  I  didn't  know  who  to  talk  to  and 
I  didn't  know  who  to  trust  and  that  I  didn't  know  really  how  to  stop 
this  gang  situation  on  Miami  Beach. 

I  had  talked  to  Mr.  Renshaw  in  the  early  part  of  my  career  after 
I  got  elected  and  he  assured  me  that  one  man  could  stop  the  gang 
operation,  one  councilman,  but  I  didn't — he  didn't  tell  me  how  and 
I  was  ashamed  to  ask  him.    I  wanted  him  to  thing  I  knew  how. 

I  told  him  that  under  the  circumstances  I  would  like  to  consult  with 
the  people  who  would  best  aid  me  in  a  campaign  of  this  type,  and  I 
told  him  that  I  thought  the  people  to  help  me  best  were  the  people  who 
helped  me  get  elected,  and  I  proposed  to  call  them  together  if  I  could 
get  them — the  heads  of  the  two  newspapers  that  supported  me — the 
Miami  Daily  News  and  the  Miami  Herald,  and  although  at  that  time 
the  Florida  Sun  had  not  supported  me,  I  said  in  all  fairness  I  wanted 
to  call  them  in,  too.  I  wanted  to  present  the  problem  to  them  not  for 
the  purpose  of  publicity,  but  to  get  them  to  advise  me  on  what  am  I 
to  do.  They  created  something  and  I  wanted  some  help  to  tell  me  how 
to  go  about  ending  this  situation  on  the  Beach  that  was  bad. 

Well,  before  I  realized  it,  they  were  willing  to  meet  at  my  office 
and  with  some  trepidation  I  called  Mr.  Pennekamp  and  I  called  Mr. 
Mahoney  and  Mr.  Storer  and  I  offered  to  meet  with  them  any  place 
they  wanted  at  their  convenience  and  it  was  they  who  suggested  that 
they  would  be  more  than  willing  to  meet  at  my  office  and  they  said  nc> 
such  meeting  had  ever  taken  place  before.  This  meeting  was  sched- 
uled for  a  specific  date,  but  before  that  date  I  had  this  fight  with 


228  ORGANIZED   CRIME    IN   INTERSTATE:  COMMERCE 

Plissner  and  we  weren't  talking.  We  had  a  meeting  at  the  city  hall 
the  day  that  this  meeting  was  scheduled  to  take  place  at  2  o'clock 
in  the  afternoon. 

I  left  the  city  hall.  I  believe  the  meeting  was  a  tax  equalization 
board  meeting,  I  am  not  certain.  I  left  the  city  hall  and  went  across 
the  street  to  a  little  restaurant  to  get  something  to  eat,  and  Plissner, 
who  had  been  in  the  city  council  chamber,  followed  me  across  and 
sat  down  at  the  table.  He  asked  me  if  I  had  any  objection  to  his 
eating  there  and  I  told  him  I  had  no  objection ;  that  it  was  a  restaurant 
and  that  he  had  a  right  to  eat  there  if  he  wanted  to  and  we  engaged  in 
small  talk. 

I  kept  taking  my  watch  out  and  jQnally  he  asked  me  why  I  was  look- 
ing at  my  watch  and  I  told  him  that  I  might  as  well  tell  him  that 
that  meeting  that  I  had  arranged  for  was  scheduled  for  that  date  at 
2  o'clock,  and  I  told  him  no,  I  didn't  intend  to  invite  him  to  the 
meeting,  but  the  more  I  think  about  it,  the  more  I  think  it  is  a  good 
idea.  I  said,  "I  am  going  to  tell  these  men  exactly  what  I  have  to 
contend  with."  I  said,  "I  am  going  to  tell  them  about  people  like  you 
and  what  you  are  asking  me  to  do." 

I  said,  "I  am  going  to  tell  them,  without  naming  you,  that  I  can't 
get  anywhere  with  any  civic  project;  that  I  am  just  going  to  be  a 
bump  on  a  log  in  a  city  council  and  I  am  going  to  tell  them  the  prob- 
lems that  I  have  and  I  am  going  to  ask  them  to  answer  me,"  and  I 
said,  "If  you  want  to  come  along,  I  will  put  you  on  the  spot  and  you 
can  discuss  the  matter  with  them  yourself."  He  said  he  would  be 
glad  to  come. 

He  came  to  the  meeting,  and  the  men  attended.  Each  of  the  men 
brought  men  from  the  editorial  staff  with  them.  Mr.  Storer  did 
not  attend.  He  sent  two  men  from  his  newspaper.  I  presented  this 
story  and  I  turned  it  over  to  Plissner  without  saying  that  he  was  the 
man  who  had  made  these  proposals,  and  the  argument  that  ensued 
lasted,  I  think,  for  about  2  hours.  It  was  a  very  vicious  argument 
between  Mr.  Plissner,  Mr.  Pennekamp  and  Mr.  Mahoney  largely. 
When  the  meeting  was  over  they  went  away  and  Mr.  Plissner  stayed 
behind.  He  got  quite  hysterical  in  the  office  and  he  told  me  that  the 
newspapers  were  seeking  nothing  more  than  headlines;  that  as  long 
as  they  could  use  me  they  would,  and  that  I  was  a  damn  fool  to  go 
along  with  them ;  that  they  would  just  as  quickly  break  me  as  carry 
me;  and  that  I  owed  it  to  him — that  he  elected  me  and  it  was  my 
obligation  to  see  that  he  got  the  punchboard  deal  or  some  other 
income. 

He  suggested  what  I  might  do  for  him  and  he  got  so  hysterical 
that  he  shouted  something  about  his  sister-in-law  needing  money,  that 
she  was  in  the  hospital,  and  I  told  him  that  that  was  ridiculous ;  that 
he  was  a  retired  man  with  a  big  home  and  that  he  had  property  in  this 
area,  and  I  finally  didn't  know  how  to  get  rid  of  him  and  I  told  him 
I  had  to  leave  the  office  and  I  turned  down  the  lights  and  walked  out 
and  he  followed  me  down  the  street  and  when  we  got  to  the  street 
I  told  him  I  didn't  think  we  thought  alike  and  I  didn't  want  to  see  him 
any  more  and  I  left,  and  the  next  day  a  friend  of  mine  called  me  and 
told  me  that  he  had  been  over  to  this  friend  and  told  this  friend  that 
I  had  dismissed  him  from  my  service. 

The  Chairman.  When  did  the  recall  petition  start  after  that? 


ORGANIZED    CRIME    IN   INTERSTATE:  COMMERCE  229 

Mr.  Richard.  I  don't  know  exactly  how  long,  but  I  think  the  re- 
call petition  was  started  about  6  or  7  months  after  my  election. 

The  Chairman.  How  about  the  indictment?  Tell  how  that  got 
started.     Make  it  as  brief  as  you  can. 

Mr,  Richard.  There  is  a  reporter,  I  believe,  in  the  courtroom  w^ho 
came  from  the  St.  Louis  Post-Dispatch.  As  a  matter  of  fact,  I 
have  mentioned  this  story  numerous  times  before  organizations  with- 
out mentioning  Mr.  Plissner  and  I  mentioned  it  on  some  radio  broad- 
casts and  nobody  paid  much  attention  to  it. 

The  reporter  from  the  St.  Louis  Post-Dispatch  came  to  my  office 
and  asked  me  some  questions.  He  published  the  story  and  it  was  car- 
ried in  the  local  papers,  and  Plissner  took  it  up  there — took  it  up  from 
there  and  commenced  denying  that  he  was  the  man  who  had  made 
the  bribe  offer.  I  never  named  him.  He  started  this  denial.  He 
went  on  the  air  and  went  before  organizations  and  gave  statements 
to  the  press.  He  commenced  a  general  denial.  That  is  how  the  thing 
grew  up. 

The  Chairman.  What  happened  after  that? 

Mr.  Richard.  Demands  were  made  I  name  the  man  and  demands 
were  made  by  a  radio  commentator  who  had  harangued  immediately 
after  that  that  some  action  be  taken  and  finally  I  offered  Mr.  Mincer, 
who  is  the  State  attorney,  that  if  I  were  asked  to  discuss  anything 
with  the  grand  jury,  I  was  prepared  to  come  in  and  tell  my  story  any 
time  they  wanted  to  hear  it.  They  sent  for  me.  I  talked  to  them 
and  as  a  result  of  that  talk  an  indictment  was  issued. 

The  Chairman.  And  the  indictment  charged  him  with  what? 
What  was  the  charge  ? 

Mr.  Richard.  It  charged  him  with  attempted  bribery.  I  don't 
know.  The  indictment,  according  to  the  newspapers,  had  some  other 
reference.     I  never  have  seen  the  indictment. 

The  Chairman.  You  mean  some  radio  station  harangued  about  that 
incident? 

Mr.  Richard.  Yes;  and  they  regularly  played  some  recordings  of 
harangues  of  a  slanderous  character. 

The  Chairman,  Wliat  person  on  the  radio  ? 

Mr.  Richard.  Barry  Gray. 

The  Chairman,  What  station  was  that? 

Mr,  Richard.  WMIE. 

The  Chairman.  Who  is  the  owner  of  that  station  ? 

Mr.  Richard,  I  understand  the  station  is  owned  by  a  man  named 
McBride,  and  I  believe  his  son  is  the  owner  of  the  Continental  Press 
Service, 

The  Chairman.  Do  you  know  whether  an  application  is  now  pend- 
ing for  additional  service  or  additional  strength  for  that  station  by 
Mr,  McBride? 

Mr.  Richard,  Yes.  I  talked  to  Mr.  Becker  while  he  was  here, 
who  was  one  of  the  attorneys  for  the  Federal  Communications  Com- 
mission, and  there  was  a  hearing  conducted  here  in  which  an  applica- 
tion was  made  for,  I  believe,  a  permanent  franchise  or  a  permanent 
permit.    I  don't  believe  they  have  a  permanent  permit. 

Senator  Hunt.  What  are  the  station's  call  letters? 

Mr.  Richard.  WMIE. 

The  Chairman.  And  they  are  now  trying  to  void  or  throw  out  the 
indictment  on  the  ground  that  what  they  charged  that  he  tried  to 
bribe  you  to  do  was  not  in  your  power  to  do ;  is  that  correct  ? 


230  ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE 

Mr.  Richard.  Yes,  sir.  Senator,  I  would  like  to  make  a  comment. 
I  have  some  very  extensive  wire  recordings.  I  have  mentioned  this 
to  Mr.  Halley.  They  are  w^ire  recordings  which  indicate — they  don't 
indicate — they  state  that  attempts  were  made  to,  by  threat  and  other- 
wise, procure  witnesses  to  testify  in  behalf  of  Plissner.  The  recordings 
make  it  quite  clear  that  the  people  who  are  making  these  demands 
now  are  making  the  statement  that  w^hat  Plissner  said  was  untrue. 

I  told  Mr.  Halley  that  the  recordings  were  so  long,  that  they  involve 
so  many  conversations  that  it  would  be  a  difficult  thing  to  produce 
here. 

The  Chairman.  Well,  we  will  analyze  them  and  use  them  in  such 
manner  as  we  think  will  suit  the  purpose  of  this  inquiry. 

Now,  you  mentioned  the  proposal  for  a  punchboard  deal  that  Mr. 
Plissner  made  of  you;  that  he  and  two  or  three  people  would  have 
control  of  the  punchboards  on  Miami  Beach;  is  that  correct? 

Mr.  Richard.  Yes.  He  said  three  people  and  he  said  that  the  net 
income 

Tlie  Chairman.  Wlio  were  those  three  people  ? 

Mr.  Richard.  He  never  mentioned  any.  He  never  mentioned  the 
man  who  was  going  to  accomplish  this. 

The  Chairman.  What  did  he  say  the  net  income  would  be? 

Mr.  Richard.  He  estimated  it  at  $750,000  a  year. 

The  Chairman.  A  year  ? 

Mr.  Richard.  Yes,  sir. 

The  Chairman.  $750,000? 

Mr.  Richard.  He  said  they  could  be  placed  in  all  of  the  hotels  and 
all  of  the  drug  stores  and  all  stores  throughout  the  city  and  they  could 
realize  an  income  of  $750,000  a  year. 

The  Chairman.  Are  there  any  questions.  Senator  Hunt  ? 

Senator  Hunt.  No,  sir. 

The  Chairman.  Mr.  Richard,  this  is  a  very  interesting  story  you 
have  given  us,  one  in  which  I  expect  you  will  find  counterparts  in  a 
great  many  places  in  the  United  States. 

As  far  as  the  chairman  of  this  committee  is  concerned — and  I  am 
sure  that  Senator  Hunt  joins  me — we  are  glad  to  see  that  you  have 
stood  up  against  the  assaults  that  have  been  made  and  we  wish  there 
were  more  people  who  would  stand  up  like  you. 

Mr.  Richard.  Thank  you,  sir. 

The  Chairman.  That  is  all. 

The  Chairman.  Mr.  H.  G.  Taylor  ?     Will  3^ou  come  around  ? 

TESTIMONY  OF  HARRY  G.  TAYLOR,  ATTORNEY 

The  Chairman.  Do  you  solemnly  swear  that  the  testimony  that  you 
will  give  this  committee  will  be  the  whole  truth  and  nothing  but  the 
truth,  so  help  you  God  ? 

Mr.  Taylor.  I  do. 

The  Chairman.  All  right,  Mr.  Halley. 

Mr.  Halley.  Mr.  Taylor,  what  is  your  occupation  ? 

Mr.  Taylor.  Attorney  at  law. 

Mr.  Halley.  And  where  is  your  office? 

Mr.  Taylor.  807  DuPont  Building. 

Mr.  Halley.  Miami? 

Mr.  Taylor.  Yes,  sir. 


ORGANIZED    CKIME    IN    INTEKSTATE    COMMERCE  231 

Mr.  Halley.  Were  yon  served  with  a  siibpeiia  by  this  committee 
to  produce  certain  records? 

Mr.  Taylor.  Yes,  sir. 

Mr.  Halley.  Have  you  produced  those  records? 

Mr.  Taylor.  Yes,  sir. 

Mr.  Halley.  What  records  have  you  produced  pursuant  to  this  com- 
mittee's subpena  ? 

Mr.  Taylor.  What  I  have ;  everythino;  I  have  got. 

Mr.  Halley.  Woukl  yon  physically  present  them  to  the  committee 
and  describe  what  you  have? 

Mr.  Taylor.  I  gave  to  your  investigator  a  synopsis  of  all  the  files 

I  have,  and  they  are  my  personal  files.     No  records  of  individuals  are 
represented  at  all.     They  are  office  files  and  correspondence. 

Mr.  Halley.  You  do  not  have  the  original  records ;  is  that  right  ? 

Mr.  Taylor.  That  is  right. 

Mr.  Halley.  You  do  have  office  files  based  on  those  records  ? 

Mr.  Taylor.  That  is  right. 

Mr.  Halley.  And  you  have  produced  them  ? 

Mr.  Taylor.  That  "is  right. 

Mr.  Halley.  You  have  with  you  a  copy  of  a  summary ;  is  that  cor- 
rect? 

Mr.  Taylor.  That  is  correct. 

Mr.  Halley.  May  that  copy  be  offered  in  evidence  to  save  the  com- 
mittee's time  ? 

Mr.  Taylor.  This  is  my  retained  copy.  The  investigator  has  the 
original  and  three  copies. 

The  Chairman.  We  will  file  a  copy  that  Mr.  Keily  has. 

Mr.  Halley.  Now,  would  you  introduce  into  evidence  those  files? 
The  committee  will  attempt  to  return  them  to  you  within  a  very 
short  time,  but  the  committee  would  like  to  inspect  them. 

Mr.  Taylor.  I  would  like  to  announce  to  the  committee  that  this  is 
a  matter  with  which  we  are  concerned  here.  It  is  one  of  asserted 
Federal  taxes  and  it  involves  possibly  a  criminal  proceeding.  That 
is  the  only  interest  I  have  in  the  S.  &  G.  Syndicate  or  anything  con- 
cerning the  S.  &  G. 

We  are  scheduled  for  a  conference  in  Washington  very  shortly  with 
respect  to  that.  We  have  been  preparing  intensively  for  that  con- 
ference. The  removal  of  these  records  and  so  on,  not  mine  in  particu- 
lar, but  many  of  the  others,  will  handicap  us  terribly  in  the  preparation 
for  that  conference. 

Mr.  Halley.  I  do  not  believe  that  the  committee  would  want  to 
handicap  you  in  your  work,  and  I  do  not  believe  that  the  committee's 
perusal  of  the  records  would  take  over  24  hours.  However,  it  might 
take  a  day  or  so  longer.  But  the  records  will  be  reviewed  and  returned 
to  you. 

The  Chairman.  Mr.  Taylor,  what  time  tomorrow  or  the  next  day 
will  you  need  the  records?  We  want  to  cooperate  with  you  in  that 
matter  and  we  appreciate  the  problem  you  have. 

Mr.  Taylor.  If  the  records  could  be  returned  to  me  by  Saturday 

The  Chairman.  The  records  will  be  returned  to  you  by  Saturday  at 

II  o'clock. 

Mr.  Halley".  And  the  list  of  items  will  be  your  receipt. 
The  Chairman.  Thank  you,  Mr.  Taylor,  for  your  cooperation.   That 
is  all. 

68958—50 — pt.  1 16 


232  ORGANIZED    ORIME    IN   INTERSTATE    COMMERCE 

Mr.  Halley.  I  offer  in  evidence  as  exhibit  No.  125  the  records  sub- 
mitted by  Mr.  Taylor  and  identified  pursuant  to  the  memorandum 
which  will  be  submitted  by  Mr.  Kiely. 

The  Chairman.  They  will  be  received  and  made  a  part  of  the  record 
as  exhibit  No.  125.  The  original  records  must  be  returned  to  Mr. 
Taylor  at  11  o'clock  Saturday.  ( Summary  of  records  referred  to  was 
marked  "Exhibit  No.  125,"  and  is  on  file  with  committee.) 

Mr.  Halley.  Thank  you. 

The  Chairman.  It  is  quite  apparent  that  from  the  very  important 
but  slow  progress  that  w^e  are  making  we  are  going  to  have  to  speed 
up  considerably  if  we  are  to  get  back  to  Washington  at  any  time  in  the 
near  future.  I  think  the  committee  had  better  meet  at  9  o'clock  in  the 
morning  instead  of  10  and  we  will  only  take  45  minutes  for  lunch 
tomorrow  noon,  and  go  on  perhaps  later  tomorrow  afternoon  than  we 
have  today. 

The  w^itnesses  who  have  been  subpenaed  will  remain  in  attendance, 
unless  you  want  to  speak  with  Mr.  Halley  or  some  member  of  the 
staff  about  the  time  that  you  might  be  needed  back  here.  Perhaps  it 
is  possible  to  dispense  with  quite  a  number  of  witnesses  until  tomorrow 
afternoon,  or  perhaps  until  late  tomorrow  afternoon,  if  you  have  other 
engagements  that  you  need  to  make. 

If  any  witnesses  are  in  a  position  where  they  must  get  away  tomor- 
row afternoon  for  some  important  personal  or  business  matters  which 
require  them  to  leave  at  an  earlier  time,  they  will  also  speak  to  the 
counsel  or  to  the  staff  and  we  will  try  to  accommodate  them  in  their 
problems. 

With  that  the  committee  will  stand  in  recess  until  9  o'clock  in  the 
morning. 

(Whereupon,  at  6:15,  the  committee  recessed  until  the  following 
morning. ) 


INVESTIGATION  OF  OKGANIZED  CKIME  IN  INTEESTATE 

COMMERCE 

FRIDAY,  JULY   14,   1950 

United  States  Senate, 
Speciai/  Committee  To  Investigate 
Organized  Crime  in  Interstate  Commerce, 

Miami,  Fla. 

The  committee  met,  pursuant  to  recess,  at  9 :  27  a.  m.,  in  the  United 
States  District  Court,  Miami,  Fla.,  Senator  Estes  Kefauver,  chair- 
man, presiding. 

The  Chairman.  The  committee  will  come  to  order.  The  chairman 
would  like  to  inquire  in  the  beginning  whether  any  of  the  10  witnesses 
that  we  have  been  trying  to  get  to  appear  before  the  committee  and 
upon  whom  we  have  been  endeavoring  to  serve  subpenas,  have  ap- 
peared this  morning.  If  so,  we  would  like  to  know,  so  that  we  can 
arrange  our  schedule  and  also  determine  whether  or  not  we  will  have 
to  rely  upon  secondary  evidence  in  this  hearing  to  prove  some  things 
that  we  would  like  to  prove  otherwise  by  more  direct  testimony. 

Sam  Cohen.  Mr.  Cohen,  I  believe,  is  in  the  hospital  and  had  an 
operation;  is  that  correct? 

Mr.  Halley.  Yes. 

The  Chairman.  So  that  he  is  accounted  for.  Harold  Salvey.  Did 
Mr.  Salvey  appear? 

(No  response.) 

The  Chairman.  Charles  Friedman. 

(No  response.) 

The  Chairman.  Eddie  Rosenbaum. 

(No  response.) 

The  Chairman.  Jules  Levitt. 

(No  response.) 

The  Chairman.  William  H.  Johnston. 

(No  response.) 

The  Chairman.  John  Patton. 

(No  response.) 

The  Chairman.  Jack  Friedlander. 

(No  response.) 

The  Chairman.  Harry  Russell. 

(No  response.) 

The  Chairman.  George  L.  Bowers. 

(No  response.) 

The  Chairman.  Apparently  none  of  these  10  witnesses  are  present. 
The  Chair  might  remind  them,  in  case  they  got  the  message,  tliat  they 
are  not  accomplishing  anything  by  failing  to  appear  here  at  this  hear- 

233 


234  ORGANIZED    OEIME    IN   INTERSTATE   COMMERCE 

ing ;  that  is,  they  are  not  accomplishing  anything  for  their  permanent 
betterment. 

I  believe  Mr.  Furman  has  answered  a  subpena  and  has  certain 
records  that  he  wants  identified. 

Mr.  Furman,  will  you  come  forward  ? 

TESTIMONY  OF  M.  G.  FURMAN,  ACCOUNTANT 

The  Chairman.  Mr.  Furman,  do  you  solemnly  swear  that  the  testi- 
mony you  will  give  this  committee  will  be  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God  ? 

Mr.  Furman.  I  do. 

Mr.  Hallet.  Mr.  Furman,  were  you  served  with  a  subpena? 

Mr.  Furman.  That  is  right, 

Mr.  Halley.  Pursuant  to  the  subpena  have  you  produced  certain 
records  ? 

Mr,  Furman.  All  of  the  records  I  have  in  my  possession. 

Mr.  Halley.  Will  you  state  what  records  you  have  in  your 
possession  ? 

Mr.  Furman.  A  mass  of  detail  pertaining  to  personal  records  of 
Harold  Salvey  and  other  working  data  which  I  am  preparing  in  my 
capacity  as  an  accountant  retained  by  the  attorneys  for  Mr.  Salvey 
in  connection  with  a  case,  an  income-tax  case,  now  pending  before 
the  General  Counsel's  Office  of  the  Bureau  of  Internal  Revenue,  Wash- 
ington, D.  C. 

Mr.  Halley.  Will  you  describe  more  particularly  what  these  records 
are ;  what  do  they  cover  ? 

Mr.  Furman.  They  cover  the  years  starting  January  1,  1945,  and 
through  to  date.     I  have  the  detail  through  1949  and  1950,  I  believe, 

Mr.  Halley,  Will  you  now  present  the  records  to  the  committee? 
Would  you  like  to  turn  them  over  in  the  brief  cases  or  would  you  pre- 
fer to  keep  the  brief  cases  ? 

Mr.  Furman.  No.  I  would  just  as  soon  turn  them  over  that  way, 
so  I  can  get  them  back  intact.     They  are  arranged  in  a  certain  order. 

Mr.  Halley.  Will  you  take  each  brief  case  and  describe  the 
contents  ? 

Mr.  Furman.  I  can  tell  you  generally,  because  there  is  an  awful 
lot  of  stuff  there. 

Mr.  Halley.  State  it  generally,  but  be  complete. 

Mr.  FuKMAN.  There  are  tax  returns  there,  copies;  there  are  bank 
checks,  bank  statements ;  there  are  various  instruments  of  ownership 
of  property,  mortgages,  records  of  tax  paid,  and  so  forth. 

Mr,  Halley.  I  offer  in  evidence  the  miscellaneous  files  produced 
by  Mr.  Furman  relating  to  Harold  Salvey  and  related  tax  cases. 

The  CiiAiRiNiAN.  They  will  be  received  and  made  a  part  of  the  record. 
(The  files  referred  to  were  marked  "Exhibit  No.  126,"  and  were  later 
returned  to  witness.)  Now,  the  chairman  understands,  Mr.  Furman, 
that  you  need  these  records  in  connection  with  work  that  you  are 
doing. 

Mr.  Furman.  Yes,  sir. 

The  Chairman.  We  will  undertake  to  see  that  they  are  returned 
to  you  as  soon  as  possible,  and  I  think  it  will  be  before  th«  committee 
leaves  Miami. 


OKGANIZED    CRIME'   IN   INTERSTATE^  COMMERCE  235 

Mr.  Hali.ey.  Do  you  have  any  other  records  of  this  S.  &  G.  Syndi- 
cate in  your  possession  ? 

]Mr.  FiTiisrAN.  At  one  time  I  had  certain  general  records  of  th6 
syndicate  in  my  possession  wlien  I  was  working  with  Mr.  Bowden,  an 
attorney,  and  also  Mr.  Taylor. 

Mr.  I  Ialley.  Up  to  what  period  did  you  have  those  records  ? 

]\Ir.  FuRMAisr.  I  have  hacl  them  oiT  and  on  until  a  few  weeks  ago — 
lip  until  last  Thursday  or  Friday  when  I  finished  the  date  I  was  pre- 
paring for  INIr.  Bowden.  Then  I  returned  the  records,  and  I  gave 
my  data  to  INIr.  Bowden,  the  attorney. 

Mr.  Halley.  Will  you  state  to  whom  you  gave  the  records  ? 

Mr.  Furman.  To  Mr.  George  K.  Bowden,  an  attorney  at  law  of 
Washington,  D.  C. 

Mr.  Halley.  Did  you  return  them  to  him  in  Washington  or  here? 

Mr.  FuRMAN.  I  gave  him  the  results  of  the  various  inquiries  he 
requested  me  to  make. 

Mr.  Halley.  AVhat  did  you  do  with  the  records  ? 

Mr.  FuKMAN.  The  records  themselves,  sir,  I  arranged  for  the  S. 
&  G.  man  to  pick  up. 

Mr.  Halley.  What  was  the  name  of  the  S.  &  G.  man  who  picked  up 
the  records  ? 

Mr.  FuRMAx.  I  think  Leo  Levitt  picked  them  up. 

Mr.  Halley.  When  did  Leo  Levitt  pick  them  up  ? 

Mr.  FuRMAN.  Either  Thursday  or  Friday. 

Mr.  Halley.  Of  last  week  ? 

Mr.  FuRMAN.  Of  last  week. 

Mr.  Halley.  That  was  a  week  ago  yesterday,  or  a  week  ago  today  ? 

Mr.  FuRMAN.  That  is  correct. 

Mr.  Halley.  Where  did  he  pick  up  those  records  ? 

Mr.  FuRMAN.  He  picked  them  up  from  my  office  when  I  finished 
with  them. 

]\Ir.  Halley.  Do  you  know  where  Leo  Levitt  is  today? 

Mr.  FuRMAN.  I  do  not. 

Mr.  Halley.  When  did  you  last  see  Leo  Levitt? 

Mr.  FuRMAN.  Maybe  Thursday  or  Friday. 

Mr.  Halley.  Will  you  please  be  more  definite  ?  When  did  you  last 
see  Leo  Levitt? 

Mr.  FuR:\rAX.  I  finished  the  records  on  either  Thursday  or  Friday. 
I  left  word  in  my  office  for  them  to  contact  the  S.  &  G.  office  and  arrange 
for  them  to  pick  up  the  records,  because  I  was  through  with  them. 
Then  I  put  them  in  a  certain  place  and  told  them  where  they  were,  so  I 
presume  he  picked  them  up  that  day,  because  he  did  come  over  there 
occasionally  when  I  asked  for  him,  because  he  brought  me  records  that 
I  needed  in  connection  with  this  tax  case  from  time  to  time. 

Mr.  Halley.  Did  you  see  Leo  Levitt  ? 

Mr.  FuRMAN.  I  dichi't  personally  see  him. 

Mr.  Halley.  Will  you  state  when  you  did  last  see  Leo  Levitt? 

Mr.  FuRMAx.  I  may  have  seen  hiin  about  3  or  4  days  previous  to 
that. 

]\Ir.  Halley.  Did  you  actually  see  him? 

Mr.  FuRMAx.  Yes,  I  did. 

Mr.  Halley.  And  when  did  you  last  speak  to  Leo  Levitt  ? 

Mr.  FuRMAx.  At  that  time? 


236  ORGANIZED    CRiEVCE    IN   INTERSTATE,  COMMERCE 

Mr.  Halley.  On  the  telephone  or  in  any  other  manner? 

Mr.  FuRMAN.  I  have  never  talked  to  him  on  the  telephone. 
'  Mr.  Halley.  Have  you  had  any  communication  with  him  since  last 
Thursday  ? 

Mr.  FuRMAN.  I  haven't. 

Mr.  Halley.  Will  you  describe  in  specific  detail  the  records  which 
you  turned  over  to  Leo  Levitt  a  week  ago  ? 

Mr.  FuRMAN.  There  was  a  general  ledger  and  the  general  journals, 
and  there  was  one  book  for  1949,  I  think  it  was,  called  client's  ledger, 
customer's  ledger,  or  whatever  you  w^ant  to  call  it. 

Mr.  Halley.  Was  there  a  cash  book? 

Mr.  FuRMAN.  Yes. 

Mr.  Halley.  A  book  showing  disbursements? 

Mr.  P'uRMAN.  That  is  right;  that  is  a  part  of  the  journals. 

Mr.  Halley.  Were  there  canceled  vouchers  and  bank  statements? 

Mr.  FuRMAN.  No.  The  work  I  was  requested  by  the  attorneys  to  do 
did  not  require  me  to  use  that  data. 

Mr.  Halley.  The  work  you  were  doing  had  to  do  with  income 
received  from  the  S.  &  G.  Syndicate  by  the  various  partners ;  is  that 
right? 

Mr.  FuRMAN.  My  work  had  to  do  with  specific  questions  that  the 
attorney  put  to  me,  and  he  was  largely  concerned  in  finding  out  from 
me  as  an  accountant  what  the  actual  bookkeeping  and  accounting  pro- 
cedure was. 

Mr.  Halley.  So  you  went  through  the  books  to  find  that  out? 

Mr.  FuRMAN.  To  see  what  the  bookkeeping  routine  was. 

Mr.  Halley.  The  attorney  was  very  much  interested,  was  he  not,  in 
the  question  as  to  what  the  actual  income  of  the  S.  &  G.  Syndicate 
members  was ;  am  I  right  on  that  ? 

Mr.  FuRMAN.  He  had  various  reports  that  had  previously  been  pre- 
pared by  the  one-time  auditor  of  the  S.  &  G.  Syndicate  who  was  killed 
in  an  accident  some  time  back.    He  had  all  of  these  reports. 

Mr.  Halley.  As  to  income? 

Mr.  FuRMAN.  As  to  income. 

Mr.  Halley.  Since  that  date  various  claims  have  been  made  by  the 
United  States  Bureau  of  Internal  Revenue  showing  that  the  income 
was  very  grossly  understated ;  is  that  correct  ? 

Mr.  FuRMAN.  The  United  States  Bureau  of  Internal  Revenue  has 
proposed  certain  adjustments  to  income,  which  are  being  contested. 

Mr.  Halley.  They  are  rather  large,  are  they  not  ? 

Mr.  FuRMAN.  They  are  rather  large. 

Mr.  Halley.  You  are  familiar  with  them  ? 

Mr.  FuRMAN.  I  think  Mr.  Bowden  showed  me  a  memorandum  at 
one  time  which  he  had  in  his  possession.     I  don't  recall  what  it  was. 

Mr.  Halley.  Is  Samuel  Friedman  a  member  of  the  S.  &  G. 
Syndicate  ? 

Mr.  FuRMAN.  According  to  the  information  that  has  been  sub- 
mitted to  me,  I  would  say  "Yes". 

Mr.  Halley.  Is  Harold  Salvey  a  member  of  the  S.  &  G.  Syndicate? 

Mr.  FuRMAN.  So  far,  on  the  face  of  the  information  submitted  to 
me,  yes. 

Mr.  Halley.  Is  Jules  Levitt  a  member  of  the  S.  &  G.  Syndicate? 

Mr.  FuRMAN.  Similarly,  as  far  as  I  know. 


ORGANIZED    CRIME    IN   INTERSTATE  COMMERCE  237 

Mr.  Halley.  Your  answer  is  "Yes"  ? 

Mr.  FuRMAN.  That  is  rio^ht. 

Mr.  Halley.  Is  Harry  Russell  a  member,  of  the  S.  &  G.  Syndicate? 

Mr.  FuRMAN.  He  became  a  member,  I  think,  in  March  of  1949. 
Prior  to  that  time  he  never  was. 

Mr.  Halley.  He  wasn't  a  member  prior  to  March  of  1949? 

Mr.  FuRMAN.  That  is  correct. 

JMr.  Halley,  He  was  a  member  subsequent  to  March  of  1949? 

Mr.  FuRMAN.  That  is  right. 

Mr.  Halley.  Subsequent  to  March  of  1949  he  held  a  one-fifth 
interest  ? 

Mr.  FuRMAN.  I  think  that  is  what  the  records  will  reflect. 

Mr.  Halley.  Was  Edward  Rosenbaum  a  member  of  the  S.  &  G. 
Syndicate. 

Mr.  FuRMAN.  Correct. 

The  Chairman.  Mr.  Furman,  the  staff  of  our  committee  has  not 
had  an  opportunity  to  examine  the  records  you  have  brought  here. 
We  would  like  to  give  them  that  opportunity,  and  then  we  would 
like  to  question  your  briefly  about  some  of  the  records.  Would  it  be 
convenient  with  you  to  return  at  2  o'clock  this  afternoon  ? 

Mr.  Furman,  Yes;  I  could  arrange  that. 

The  Chairman,  All  right,  Mr.  Furman,  we  will  excuse  you  at  this 
time.  You  will  remain  under  subpena  and  will  return  to  the  com- 
mittee at  2  o'clock  this  afternoon. 

Senator  Hunt.  For  the  record,  Mr.  Furman,  your  initials,  please. 

Mr.  FuRiMAN.  M.  G. 

The  Chairman.  Mr.  Jimmy  Sullivan,  will  you  come  around? 

TESTIMONY   OF  JAMES  A.   SULLIVAN,   SHERIEE,   DADE  COUNTY, 
FLA.,  ACCOMPANIED  BY  RICHARD  M.  HUNT,  ATTORNEY 

The  Chairman.  Mr.  Sullivan,  do  you  solemnly  swear  that  the  testi- 
mony you  will  give  this  committee  will  be  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God  ? 

Mr.  Sullivan.  I  do. 

Mr.  Halley.  Will  you,  Mr.  Sullivan,  state  your  occupation? 

Mr.  Sullivan.  I  am  sheriff  of  Dade  County. 

Mr.  Halley.  How  long  have  you  been  sheriff  ? 

Mr.  Sullivan.  Since  January  3,  1945. 

Mr.  Hunt.  At  the  outset  of  this  witness'  testimony,  I  would  like 
to  present  into  the  record  a  statement  by  way  of  an  objection  on 
behalf  of  this  witness,  which  doesn't  go  to  the  jurisdiction  of  the 
committee. 

The  Chairman.  I  understand,  sir,  that  you  are  his  attorney? 

Mr.  Hunt.  That  is  correct. 

The  Chairman.  What  is  your  name  ? 

Mr.  Hunt.  Richard  M.  Hunt. 

The  Chairman.  Mr.  Hunt,  the  committee  is  of  course  glad  to  give 
you  the  opportunity  to  appear  with  your  client.  Will  you  state  the 
objection  that  you  have  to  our  interrogation  of  Sheriff  Sullivan? 

^Ir.  Hunt.  The  objection  is  not  so  much  to  the  interrogation  of  him 
as  to  other  matters  that  affect  this  witness  and  the  general  attitude 
and  demeanor  of  certain  members  of  the  committee  and  its  counsel 
in  this  proceeding,  which  I  would  like  to  reflect  in  this  record. 


238  ORGANIZED    CRIME    IN   INTERSTATE    COMMERCE 

The  Chairman.  Do  you  want  to  make  a  brief  comment?  Do  you 
want  to  file  this  objection  ? 

Mr.  Hunt.  I  would  like  to  read  the  objection. 

The  Chairman.  How  long  is  it,  Mr.  Hunt? 

Mr.  Hunt.  Three  pages. 

The  Chairman.  Can  you  outline  the  objection  and  summarize  it  for 
the  benefit  of  the  committee  ? 

Mr.  Hunt.  I  would  prefer  not  to  in  the  interest  of  exactitude. 

The  Chairman.  Very  well,  will  you  read  the  objection? 

Mr.  Hunt.  The  Supreme  Court  of  the  United  States,  in  Sinclair  v. 
V.  S.  (49  S.  Ct.  268,  279  U.  S.  263)  and  in  Federal  Trade  Coinmission 
Y.  American  Tobacco  Co.  (44  S.  Ct.  336,  264  U.  S.  298,  etc.) ,  said : 

*  *  *  And  that  case  shows  that,  while  the  power  of  inquiry  is  an  essential 
and  appropriate  auxiliary  to  the  legislative  function,  it  must  be  exerted  with 
due  regard  for  the  rights  of  witnesses,  and  that  a  witness  riglitfully  may  refuse 
to  answer  where  the  bounds  of  the  power  are  exceeded  where  the  questions  asked 
are  not  pertinent  to  the  matter  under  inquiry. 

It  has  always  been  recognized  in  this  country,  and  it  is  well  to  remember,  that 
few  if  any  of  the  rights  of  the  people  guarded  by  fundamental  law  are  of  greater 
Importance  to  their  happiness  and  safety  than  the  right  to  be  exempt  from  all 
unauthorized,  arbitrary,  or  unreasonable  inquiries  and  disclosures  in  respect  of 
their  personal  and  private  affairs.  In  order  to  illustrate  the  purpose  of  the  courts 
well  to  uphold  the  right  of  privacy,  we  quote  from  some  of  their  decisions. 

In  Federal  Trade  ConimisMon  v.  American  Tobacco  Co.  (264  U.  S.  298,  305,  306, 
44  S.  Ct.  336,  337  (68  L.  Ed.  696,  32  A.  L.  R.  786) ),  this  Court  said :  "Any  one  who 
respects  the  spirit  as  well  as  the  letter  of  the  fourth  amendment  would  be  loath 
to  believe  that  Congress  intended  to  authorize  one  of  its  subordinate  agencies  to 
sweep  all  our  traditions  into  the  fire  (Interstate  Commerce  Commission  v.  Brim- 
son,  154  U.  S.  447,  479  ;  14  S.  Ct.  1125,  38  L.  Ed.  1047),  and  to  direct  fishing  expedi- 
tions into  the  private  papers  on  the  possibility  that  they  may  disclose  evidence  of 
crimes.  We  do  not  discuss  the  questions  whether  it  could  do  so  if  it  tried,  as 
nothing  short  of  the  most  explicit  language  would  induce  us  to  attribute  to  Con- 
gress that  intent.  *  *  *  It  is  contrary  to  the  first  principles  of  justice  to 
allow  a  search  through  all  the  respondents'  records,  relevant  or  irrelevant,  in 
the  hope  that  something  will  turn  up." 

The  sovereign  legislative  power  delegated  to  this  committee  by  Sen- 
ate Resolution  202  is  definitely  limited  and  restricted  to  the  making  of  a 
study  and  investigation  of  the  subject  matter  of  the  resolution. 

Even  in  the  trial  of  a  criminal  case,  the  person  accused  is  presumed 
innocent  until  the  contrary  is  made  to  appear  to  the  exclusion  of  a 
reasonable  doubt.  The  judge  and  jury  approach  their  respective  trial 
functions  in  the  reception  and  consideration  of  evidence  with  open, 
fair,  and  impartial  minds,  and  accord  temperate  and  considerate  treat- 
ment to  the  accused. 

The  proceedings  before  this  committee  do  not  closely  approach  the 
seriousness  and  finality  of  trial  where  judgment  and  sentence  follow 
the  verdict.  This  committee  can  only  conduct  a  study  and  investiga- 
tion through  the  use  of  fair  and  reasonable  procedural  means,  con- 
sistent with  the  power  conferred  and  the  rights  of  citizens  compelled 
to  appear  and  testify  by  force  of  sovereign  subpena. 

The  committee  and  its  counsel,  we  believe,  have  transcended  the 
limits  of  committed  authority,  and  violated  the  constitutional  rights 
of  citizens  of  this  country  in  the  following  instances  : 

1,  Committee  counsel  caused  an  ex-deputy  sheriff  (Howden)  to 
testifv  to  an  inadmissible  statement  of  another  (wlio  denied  it)  that 
the  other  person  had  made  a  very  damaging  remark  concerning  a  fine 


ORGANIZED    CRIME'   IN   INTERSTATE   COMMERCE  239 

lady,  wife,  and  mother  of  this  city,  whose  husband  is  a  witness,  not  a 
defendant,  before  this  committee. 

Committee  counsel  well  knew  that  the  person  to  whom  the  remark 
was  to  be  attributed  held  it  to  be  false,  and  he  further  knew,  as  an 
accomplished  examiner,  that  this  evidence  would  not  be  received  in 
a  court  of  law  under  the  rules  of  evidence;  but  irrespective  of  his 
complete  awareness  of  proclaimed  falsity  and  evidentiary  impro- 
priety, he  deliberately,  heedlessly,  and  unnecessarily  brought  about 
a  public  smearing  and  indictment  against  an  innocent  lady  which, 
as  he  doubtless  intended,  has  brought  great  grief,  hurt,  and  suffering 
to  her  and  her  two  children, 

2.  The  third-degree  attitude  and  partisan  slant  of  questions  pro- 
pounded by  committee  counsel  clearly  reflect  the  characteristic  of  a 
prosecutor  boring  in  for  the  kill,  rather  than  the  calm,  courteous, 
thoroughgoing  demeanor  of  a  quasi- judicial,  official  intent  upon  a  fair 
and  impartial  discovery  of  facts. 

The  studied  sarcasm  and  the  I-don't-believe-you  deportment  of 
committee  counsel  betray  him  as  having  already  chosen  sides  and 
alining  himself  on  the  issues  before  ever  hearing  the  testimony  of 
witnesses  most  vitally  concerned  in  the  proceeding.  Such  is  not  con- 
ducive to  a  fair  study  and  investigation,  nor  is  such  demeanor  and 
actions  of  counsel  fair  and  just  treatment  of  citizen-witnesses  brought 
before  this  body. 

3.  The  chairman  of  the  committee  is  quoted  in  the  morning  paper 
as  having  stated  publicly  that,  "We  understand  Sheriff  Sullivan 
has  been  a  very  poor  boy  but  he's  pretty  well  off  now.  We're  going 
to  ask  pretty  direct  questions."  This  statement,  if  true,  indicates  a 
state  of  mind  on  the  part  of  the  chairman  which  prejudges  and  con- 
victs the  witness  of  corrupt  acts  before  his  testimony  is  even  heard 
or  his  records  inspected,  and  bespeaks  a  mental  adoption  of  the  anti- 
Sullivan  smear  campaign  of  the  two  local  dailies  and  Mr.  Drew 
Pearson.  Such  statements  cannot  possibly  aid  the  hearing  record  of 
this  proceeding,  and  only  serve  to  (a)  damage  and  slander  the  wit- 
ness in  his  name  and  official  position,  and  (h)  reflect  a  prejudgment 
which  is  contrary  to  American  traditions  and  rules  of  law  in  judicial 
or  quasi-judicial  proceedings. 

This  temple  of  justice  should  not  be  perverted  into  an  inquisition 
whipping  post ;  the  witness,  an  American  citizen  holding  high  office  in 
his  community,  should  not  be  made  a  public  whipping  boy ;  and  the 
committee  should  not  come  into  this  State  and  city,  aline  itself  with 
the  political  enemies  of  the  witness,  and  become  the  sovereign  execu- 
tioner of  the  witness  and  his  family  under  the  aegis  and  shield  of 
assumed,  but  undelegated,  sovereign  power. 

The  witness  has  responded  to  committee  process  and  is  prepared  to 
answer  all  questions  put  to  him  by  the  committee  and  to  submit  docu- 
mentary proofs  upon  both  personal  life  and  official  acts.  He  expects 
to  receive  fair,  proper,  and  unprejudiced  treatment  at  the  hands  of  the 
committee. 

The  witness  and  his  attorney  hold  the  committee  and  its  counsel 
in  the  highest  personal,  professional,  and  official  respect,  and  fully 
respect  the  process  and  dignity  of  the  Senate  and  of  this  committee. 

The  witness  will  not,  however,  submit  lightly  to  abuse  or  indignity 
in  the  course  of  the  committee's  exercise  of  committed  power  to  study 
and  investigate  on  behalf  of  the  Senate  of  the  United  States. 


240  ORGANIZED    CRIME    IN   INTERSTATE  COMMERCE 

In  closing  I  would  like  to  say  that  nnless  Mr.  Halley  submits  before 
this  hearing  evidence  which  would  be  admissible  in  a  court  of  law 
in  connection  with  the  left-handed  and  completely  hearsay  smear  of 
Mrs.  Sullivan  yesterday,  I  would  like  to  move  the  committee,  at  the 
conclusion  of  the  hearing,  to  strike  this  testimony  from  the  record 
to  the  end  that  innocent  persons  will  not  be  made  to  suffer. 

The  Chairman.  ISIr.  Hunt,  you  can  make  any  motion  at  any  time 
on  behalf  of  any  client  that  you  represent.  The  committee  is  glad  to 
have  you  make  your  statement  which  is  now  a  part  of  the  record. 

I  think  I  should  call  your  attention  to  the  fact  that  of  course  it 
is  required  of  us  by  the  resolution  under  wdiich  we  are  operating  that 
we  consider  and  look  into  corrupting  influences  that  organized  crime, 
operating  in  interstate  commerce,  may  have  on  governing  officials  or 
law-enforcement  officers. 

We  acknowledge  that  in  an  inquiry  of  this  kind,  it  is  very  difficult 
to  do  that  in  that  some  person's  name  might  not  be  brought  out  and 
to  whom  some  injustices  may  be  done,  and  it  is  with  that  in  mind  that 
I  have  announced  at  the  beginning  of  any  session  that  if  anyone  felt 
that  their  name  had  been  improperly  used  or  that  they  had  been  im- 
properly accused,  this  committee  would  be  ready  and  willing  to  hear 
them. 

Just  a  while  ago  the  chairman  received  a  telegram — it  may  have 
been  delivered  last  night  but  I  just  got  it  a  little  while  ago — in  which 
Mr.  Plissner,  about  whom  Mr.  Richard  testified  yesterday,  wanted  to 
make  some  explanation  following  Sheriff  Sullivan's  testimony. 

We  expect  to  call  Mr.  Plissner  to  make  any  explanation  he  wishes. 

The  committee  has  gone  to  a  great  deal  of  trouble  in  having  a  pre- 
liminary closed  hearing  in  order  to  try  to  ferret  out  the  relevant  testi- 
mony to  our  inquiry  in  which  we  feel  the  Senate  would  be  interested, 
and  also  the  Congress  of  the  United  States, 

I  should  call  your  attention,  Mr.  Hunt,  to  the  fact  that  the  commit- 
tee spent  two  very  full  days — Senator  Hunt  and  the  chairman — in 
going  over  in  executive  session  a  great  many  conditions  that  are 
alleged  to  exist  in  Dade  County  and  in  this  section  of  Florida,  and 
most  of  which  testimony  has  not  as  yet  been  made  public. 

At  that  time  the  committee  undertook  to  call  in  Sheriff  Sullivan 
to  testify.  Sheriff  Sullivan  was  away,  I  believe,  on  a  fishing  trip 
on  the  west  cojast.  The  subpena  was  not  served  upon  him.  Sheriff 
Sullivan  afterward  wired  the  committee  that  he  didn't  know  about  the 
fact  that  he  was  wanted  or  that  his  testimony  was  desired,  and  tliat 
he  was  ready  and  willing  to  appear  at  any  time.  I  think  that  was 
the  substance  of  your  telegram  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  So  that  is  the  situation. 

Mr.  Sullivan.  I  was  informed,  Senator,  however,  that  there  was 
no  subpena  out  for  me,  and  that  my  office  informed  the  caller,  who- 
ever he  may  have  been,  that  I  could  be  gotten  there  right  shortly 
if  it  was  so  desired. 

The  Chairman.  I  can  only  report  what  was  reported  to  me.  Sheriff 
Sullivan. 

I  know  the  chairman  did  ask  for  your  aj^pearance  at  that  time,  and 
that  Ave  were  informed  botli  at  your  liome,  I  believe,  and  at  the 
office  that  you  were  not  available  and  they  didn't  know  where  to  find 


ORGANIZED    CRIME    IN   INTEKSTATOE:  COMMERCE  241 

you  and  they  couldn't  reach  yon,  and  wouldn't  be  able  to  get  you  to 
appear  when  we  were  here  at  that  time. 

I  ordered  that  a  subpena  be  issued  for  you — and  frankly  I  can't 
say  whether  it  was  served  or  whether  or  not  it  was  served  or  what 
effort  was  made  to  serve  it.  But  inquiry  was  made  and  we  were  in- 
formed that  we  could  not  find  you  at  that  time. 

Mr,  Halley,  do  you  have  any  comment  that  you  would  like  to  make 
i   in  reply  to  Mr.  Hunt? 

]\Ir,  Haixey.  If  the  Chair  will  excuse  me  from  commenting,  I  pre- 
fer not  to. 

I  do  think  I  should  state  that  the  law  with  respect  to  Senate  com- 
mittee hearings  is  that  they  are  not  restricted  to  the  testimony  that 
would  be  admissible  in  a  court  of  law.  They  are  restricted  to  hearing 
1  testimony  in  hearing  which  in  the  good  judgment  of  the  committee 
!  is  fair  testimony  and  apt  to  bring  out  the  facts  and  the  truth,  but 
I  they  are  not  bound  by  the  strict  rules  of  hearsay  or  any  of  the  other 
strict  rules  of  evidence. 

I  would  further  simply  like  to  point  out  with  respect  to  the  law  that 
the  testimony  to  which  you  referred,  even  in  a  court  of  law,  would 
not  be  considered  hearsay. 

Mr.  Hunt.  I  disagree  with  you,  but  very  respectfully,  sir. 

The  Chairman.  Certainly  the  cases  do  not  limit  a  congressional 
committee  to  the  type  of  testimony  that  is  required  in  a  court  of  law. 

All  right,  ]\Ir.  Halley,  will  you  proceed  to  examine  Sheriff  Sullivan  ? 

Mr.  Halley.  ]Mr.  Chairman,  Sheriff  Sullivan  appears  to  have  with 
him  a  nmnber  of  records  and  I  would  like,  with  the  committee's  per- 
mission, to  ask  Sheriff  Sullivan  if  he  w^ould  like  to  make  a  statement 
before  he  is  questioned. 

Mr.  Sullivan.  Well,  first  I  have  a  letter  that  I  would  like  to  read 
and  make  a  part  of  this  record. 

The  Chairman.  You  may  do  so. 

Mr.  Sullivan.  This  is  a  letter  to  Senator  Kef  auver,  chairman  of  the 
Special  Committee  To  Investigate  Organized  Crime  in  Interstate 
Commerce. 

The  Chairman.  What  is  the  date  of  that  letter  ? 

Mr.  Sullivan.  July  6,  1950. 

Mr.  Hunt.  This  is  in  answer  to  your  last  letter. 

The  Chairman.  I  think  prior  to  the  reading  of  this  letter,  the  letter 
that  the  chairman  of  the  committee  wrote  Mr.  Sullivan  will  be  in- 
cluded in  the  record. 

(The  letter  referred  to,  dated  June  26',  1950,  is  herewith  incorpo- 
rated :) 

United  States  Senate, 
Special  Committee  To  Investigate 
Organized  Crime  in  Interstate  Commeiece, 

June  26,  1950. 
Sheriff  Jimmy  Sullivan. 

Dade  County,  Fla. 
Dear  Sheriff  Sullivan  ;  The  United  States  Senate  has  designated  this  spe- 
cial committee  to  investigate  organized  crime  in  interstate  commerce.  To  ac- 
complish its  objectives,  the  committee  proposes  to  obtain  as  much  information  as 
possible  concerning  tlie  operations  of  organized  criminals  and  racketeers  in  every 
portion  of  the  country.  It  is  hoped  that  by  compiling  this  information  and  cross 
referencing  it,  the  committee  can  discover  leads  which  might  not  be  obtained 
in  investigations  confined  to  particular  areas  alone. 


242  ORGANIZED    CR'IME    IN    INTERSTATE    COMMERCE 

For  this  reason,  the  committee  is  writing  to  a  number  of  prominent  persons 
throughout  the  United  States  for  the  purpose  of  ascertaining  their  views  on  the 
activities  of  organized  criminals  in  their  areas.  The  committee  is  particularly- 
interested  in  activities  in  which  interstate  communication  facilities  are  used, 
or  in  which  an  investment  is  made  in  either  legitimate  or  illegitimate  enterprises 
of  moneys  illegally  obtained  in  other  areas,  or  in  which  some  evidence  of  inter- 
state activity  can  be  found.  In  addition,  we  are,  of  course,  interested  in  viola- 
tions of  narcotics,  counterfeiting,  and  other  Federal  laws.  Where  there  is  evi- 
dence such  criminals  are  protected  with  the  connivance  of  law-enforcement 
othcers  or  other  public  otHeials.  the  committee  will  welcome  your  advice. 

The  committee  would  very  much  appreciate  receiving  from  you,  in  such  detail 
as  you  see  fit,  a  statement  of  conditions  as  you  have  observed  them  relating  to 
the  above  matters.  This  statement  will  serve  as  a  background  for  further 
inquiries  and  for  investigations  or  hearings.  Any  infoi'mation  furnished  wiU 
be  kept  confidential  if  you  so  desire. 

We  know  that  this  request  will  impose  upon  both  your  time  and  energies,  but 
we  are  assured  that  the  sub.iect  matter  is  one  in  connection  with  which  we  have 
your  full  interest  and  cooperation.  This  committee  realizes  that  the  task  before 
it  is  of  such  great  size  that  it  can  be  accomplished  only  through  the  joint  efforts 
and  with  the  help  of  all  those  who  are  interested  in  stamping  out  organized  crime 
throughout  the  Nation. 
Sincerely, 

EsTES  Kefaxjver,  Chairman. 

Mr.  Sullivan  (reading)  : 

Hon.  EsTEs  Kefauvek, 

Chairman,  Special  Committee  To  Investifiate  Organized  Crime  in  Inter- 
state Commerce,  United,  States  Senate,  Washington,  D.  C. 

Honorable  Sir  :  I  beg  to  acknowledge  receipt  of  your  letter  of  June  26.  Your 
first  inquiry  is  addressed  to  activities  of  organized  criminals  in  which  interstate 
communication  facilites  are  used,  or  in  which  an  investment  is  made  in  the  area 
of  moneys  illegally  obtained  in  other  areas,  or  in  which  some  evidence  of  inter- 
state activity  can  be  found. 

The  only  interstate  communication  facilities  used  by  persons  engaged  in  race- 
track booking  activities  which  have  come  to  our  attention  are  the  wire  services 
which  already  claimed  the  attention  of  your  committee,  and  which  have  on 
several  occasions  litigated  their  contentions  in  circuit  courts  and  supreme  court  of 
this  State. 

As  to  investments  in  this  community  of  moneys,  illegally  obtained  in  other 
areas,  this  office  has  no  information.  From  time  to  time  a  local  law-enforce- 
ment league,  and  current,  a  crime  commission  have  cliarged  that  one  or  more  of 
the  Miami  Beach  Hotel  properties  are  owned  by  persons  from  other  States  who 
formerly  were  engaged  in  illegal  enterprises  or  associations,  but  whether  evidence 
exists  to  support  these  charges  is  a  matter  of  which  this  office  has  no  knowledge, 
since  no  citizen  of  the  county,  crime  commission,  or  otherwise  has  ever  presented 
my  office  with  evidence,  affidavit,  or  supported  charge  in  this  direction.  It  has 
been  my  experience  that  the  accusations  and  charges  of  the  so-called  crime  com- 
mission have  consistently  been  broadcast  over  local  radio  stations  and  pulilished 
in  local  newspapers  in  sensational  fashion,  rather  than  being  placed  before 
any  warrant-issuing  officer  or  body,  such  as  the  county  grand  .iury,  the  State 
attorney,  the  county  solicitor,  any  judge  of  the  circuit  court,  the  judge  of  the 
criminal  court  of  record,  the  county  judge,  or  any  of  the  justices  of  the  peace. 
My  office  has  many  times  publicly  solicited  evidence  upon  which  to  ground  crimi- 
nal charges  against  any  of  the  persons  mentioned  in  these  radio  broadcasts  and 
newspaper  articles,  but  we  have  yet  to  interview  the  first  citizen,  or  to  receive  the 
first  affidavit  in  connection  therewith. 

My  office  is  not  apprised  of  violation  of  narcotics,  counterfeiting,  and  other 
Federal  laws  which  fall  witliin  the  province  of  Federal  law  enforcement  agencies, 
except  that  we  give  full  cooperation  to  tlie  investigation  and  appreliension  activi- 
ties of  tlie  Federal  authorities,  and  when  oxu-  officers  detect  such  offenses  or 
offenders,  the  proper  Federal  authorities  are  immediately  notified  and  prompt 
action  taken. 

It  has  never  come  to  my  attention  that  law  enforcement  officers  of  this  county 
are  in  connivance  with  any  chiss  of  criminal  or  racketeer. 

You  invite  my  views  relating  to  conditions  in  tliis  county  touching  upon  the 
subject  matter  of  your  letter,  wiiich  are  lierewitli  presented,  viz: 

(a)  It  is  my  definite  opinion  that  this  county  has  been  unjustly  scandalized 
and  maliciously  slandered  by  the  local  crime  commission  and  the  two  daily  news- 


ORGANIZED    CRIME:  IN   INTERSTATEi  COMMERCE'  243 

papers  of  Miami  in  their  sensational  newspaper-selling  charges  of  the  existence 
of  a  criminal  and  racketeer  situation  in  Dade  County  which  does  not  exist  In  point 
of  fact.  Beinij;  a  resort  community,  with  hundreds  of  thousands  of  tourists 
visiting  us  each  year,  any  reasonable-minded  person  would  know  that  some  of 
the  undesirables  ot  the  Nation  will  be  among  tiie  desirables  who  visit  us,  but  it 
does  not  at  all  follow,  as  seems  to  be  the  theme  song  of  the  newspapers  and  their 
crime  commission,  that  the  entire  county  is  bad,  or  that  the  people  of  this  county 
are  bad,  merely  because  of  the  presence  within  our  borders  of  a  liandful  of  these 
undesirables.  Naturally,  tlieir  coming  here  is  to  be,  and  has  been,  discouraged 
by  my  office  through  use  of  legal  processes,  wherever  same  could  be  applied  in  a 
legal  manner ;  however,  the  complaints  of  my  critics  seem  to  be  that  I  have  been 
unwilling  to  breach  my  $25,000  fidelity  bond  and  my  oath  of  office  by  adoption  of 
illegal  methods  in  the  handling  of  this  problem.  We  have  never  refused  or 
delayed,  and  shall  never  refuse  or  delay,  to  effect  an  arrest  or  execute  a  warrant 
for  anyone  where  the  proper  initiating  affidavit  is  made  out  and  the  warrant 
delivered  to  my  office  for  service ;  and  as  above  indicated,  I  have  publicly  solicited 
information  and  evidence,  and  have  offered  the  full  cooperation  of  my  office  to 
the  end  of  eliminating  the  undesirable  element  from  this  county. 

(b)  Approximately  $200,000,000  per  year  is  gambled  in  this  county  through 
legalized  pari-mutuel  machines  at  the  horse  and  dog  tracks,  which  are  operated 
by  the  State  of  Florida  in  conjunction  with  the  track  owners.  This  condition 
seems  to  surcharge  the  atmosphere  with  the  spirit  of  betting,  and  to  incline  public 
opinion  considerably  in  favor  of  the  placing  of  bets  on  horse  and  dog  races  and 
therefore  reacts  against  a  strict  enforcement  of  the  State  gambling  laws  relating 
thereto.  This  situation  renders  the  task  of  my  office  in  enforcing  the  gambling 
laws,  particularly  against  bookmaking,  an  extremely  difficult  one,  as  we  have 
little,  if  any,  cooperation  from  the  public  in  the  furnishing  of  evidence  or  filing 
of  complaints  against  the  operators  of  this  particular  class  of  illegal  activity. 
The  question  is  often  asked  as  to  why  it  is  sinful  and  against  the  law  to  bet  $10 
on  Mollio-0  in  the  fifth  race  outside  the  wooden  fence  of  a  race  track  when  the 
person  placing  the  bet  can  bet  the  same  amount  on  the  same  horse  and  in  the 
same  race  within  the  confines  of  the  track,  and  still  be  a  good  citizen.  However, 
i  realize  these  considerations  are  for  others  and  not  for  the  sheriff  of  a  county, 
since  it  is  his  duty  to  enforce  the  law  as  he  finds  it  upon  the  statute  books.  This 
I  have  consistently  done  to  the  very  best  of  my  ability. 

For  your  information,  in  the  year  1948  my  office  handled  279  gambling  cases, 
or  an  average  of  23i/2  cases  per  month.  In  the  year  1949,  my  office  handled  574 
gambling  cases,  or  an  average  of  47^/^  cases  per  month.  With  the  recent  addi- 
tion of  several  men  in  my  criminal  department,  we  are  making  an  all-out  effort 
to  stamp  out  this  and  other  classes  of  gambling  in  Dade  County ;  and  in  this 
regard,  my  office  receives  the  fullest  assistance  and  cooperation  of  the  governor, 
the  State  racing  commission,  the  State  beverage  department,  and  other  State, 
county,  and  municipal  enforcement  oflScers. 

I  was  of  the  opinion  in  1944,  when  I  first  became  sheriff  of  this  county,  and  am 
still  of  the  opinion,  that  the  only  real  solution  to  the  local  gambling  problem 
lies  in  the  adoption  of  a  modified  form  of  legalized  gambling  where  all  betting, 
not  only  on  the  ract  tracks  but  off  the  race  tracks,  would  be  permitted  under 
strict  State  sui)ervision  with  the  State  collecting  the  revenue  for  the  benefit 
of  the  taxpayers  and  public  institutions  of  the  county.  Through  such  means, 
I  believe  that  gambling  racketeers  would  be  promptly  put  out  of  business, 
necessary  street  improvement,  sewerage  installations,  public  schools,  and  other 
buildings  could  be  provided,  parks  could  be  beautified,  and  the  public  welfare 
better  served  generally,  without  a  dime's  additional  tax  expense  to  the  taxpayers 
of  the  county.  I  realize  that  a  large  number  of  persons  in  the  county  stand  in 
opposition  to  such  a  plan,  but  it  is  my  belief  that  if  the  same  were  submitted  to  a 
referendum  selection  of  taxpayers  and  citizens  of  Dade  County,  the  oppositionists 
would  find  themselves  in  the  minority  at  the  voting  booths. 

Notwithstanding  the  personal  views  above  expressed,  as  sheriff  of  Dade 
County,  I  have  been,  and  will  continue  to  be  ever  mindful  of  my  official  duty  as 
regards  gamblers  and  other  types  of  lawbreakers,  and  will  vigilantly  enforce 
the  gambling  laws,  as  well  as  other  laws  pertaining  to  criminal  violations  as 
and  when  the  same  occur  and  my  office  is  able  to  detect  and  apprehend  the 
offender. 

You  are  at  liberty  to  handle  this  letter  on  a  confidential  basis,  or  otherwise,  in 
your  own  discretion. 

Very  truly  yours, 

Jimmy  Sullivan, 
Sheriff,  Dade  County,  Fla. 


244  ORGANIZED    CRIME    IN    INTERSTATE    COATMERCE 

Mr.  Halley.  Is  there  any  further  statement  you  want  to  make? 

Mr.  Sullivan.  Mr.  Halley,  I  have  some  records  of  our  office  that 
I  would  like  to  present  to  this  committee. 

However,  along  the  same  facts  that  I  am  speaking  of  here,  the  letter 
that  I  just  finished  reading,  I  would  like  to  present  the  winter  term 
grand  jury  report  of  1948,  tlie  articles  that  are  marked  on  page  5. 

The  Chairman.  The  report  will  be  made  exhibit  No.  127.  (Appen- 
dix, pp.  755-759.)      You  can  read  any  part  of  it  you  want  to. 

Mr.  Sullivan.  It  is  short.     I  will  read  it. 

The  Chairman.  All  right. 

Mr.  Sullivan  (reading)  : 

It  has  long  been  a  known  fact  that  law-making  bodies  cannot  successfully 
legislate  morals.  The  best  example  of  this  statement  was  the  late  lamented 
Prohibition  Act.  Impossibility  of  enforcement  led  to  a  general  breakdown  in  all 
law  enforcement.  We  are  faced  today  with  the  same  situation  on  the  question 
of  gambling.  This  grand  jury  has  pondered  the  question  thoroughly  and  deeply ; 
it  has  gone  through  every  phase  of  gambling  activities,  from  bookmaking  to 
mobster  infiltration.  The  consensus  of  opinion  of  the  grand  jurors  has  boiled 
down  to  the  fact  that  inasmuch  as  we  find  general  laxity  in  the  enforcement  of 
the  gambling  laws,  and  that  inasmuch  as  pari-mutuel  betting  has  been  legalized 
by  the  State,  and  that  furthermore  if  all  who  desire  to  bet  were  compelled  to 
attend  the  various  pari-mutual  establishments  they  could  not  be  accommodated 
we  believe  that  a  solution  would  be  to  legalize  bookmaking  where  bets  may  be 
made  and  coursed  through  whatever  pari-mutual  establishment  w;is  operating 
at  the  time,  thereby  gaining  for  the  State  the  revenue  that  it  now  loses  through 
sneak  bookmaking. 

Such  legalized  bookmaking  stations  should  be  licensed  and  controlled  by  the 
State,  county,  or  municipal  governments,  whichever  the  legislators,  in  their 
judgment,  may  deem  best.  Policing  of  such  a  set-up  should  be  put  into  the  hands 
of  the  State  racing  commission,  and  the  funds  of  such  policing  should  be  derived 
from  the  revenue  received  by  the  State  racing  commission. 

Now,  I  would  like  to  read  some  notations  here  that  were  received  by 
me,  such  as  correspondence  under  date  of  February  4,  1947. 

The  Chairman.  You  can  file  all  of  this  as  part  of  the  record  and 
read  whatever  you  want  to,  if  you  wish. 

(Correspondence  referred  to  was  read  into  record.     See  below.) 

Mr.  Sullivan.  This  is  from  the  attorney  general  of  the  State  of 
Florida. 

The  Chairman.  Wlio  was  the  attorney  general  at  that  time? 

Mr.  SuLLrv'AN.  Tom  Watson. 

In  leading  up  to  this  letter  from  the  attorney  general  of  the  State 
of  Florida  I  would  like  to  read  here  just  one  of  the  many  articles  that 
came  into  my  office  through  sneaks  and  through  the  back  door  and  in 
many  other  ways.  It  is  not  open  and  aboveboard,  and  was  not  done  in 
a  helpful  manner  or  in  a  manner  to  help  our  office  or  to  help  our 
county ;  just  plain  politics.    Here  is  the  copy : 

January  22,  1947. 
Mr.  James  Sullivan, 

Sheriff  of  Dade  County,  Fla.,  Miami,  Fla. 

Deau  Sir:  As  you  must  already  know,  extensive,  open,  illegal  gambling  is  now 
being  conducted  at  the  Sunny  Isles  Casino,  Dade  County,  Fla. 

The  Law  Enforcement  League  of  Dade  County  demands  that  you  do  your  duty 
and  stop  this  notorious  violation  of  law. 

As  citizens  of  Dade  County,  we  will  not  be  satisfied  with  token  raids  or  other 
inett'ectual  actions  on  the  part  of  your  office.  You  have  adeipiate  means  at  your 
command  to  enforce  the  law,  as  outlined  in  swtion  144.02  of  the  Florida  Statutes, 
and  we  demand  that  this  be  done  immediately. 


ORGANIZED    CRIME    IN   INTEESTATE   COMMERCE  245 

Moreover,  we  extend  to  you  all  the  facilities  of  our  organization  and  agree  to 
furnish  all  additional  deputies  needed  for  this  purpose. 
Sincerely, 

George  Light, 
Secretary,  Laiv  Enforcement  League  of  Dade  County,  Fla. 

There  was  a  copy  of  this  sent  to  the  grand  jury,  which  was  in  opera- 
tion, and  to  the  Miami  Herald  and  Miami  Daily  News.  All  for  no 
good  purpose. 

The  Chairman.  What  is  tlie  date  of  that  letter,  did  you  say  ? 

Mr.  Sullivan.  The  date  of  that  letter  was  January  22,  1947. 

I  have  a  letter  here  to  the  Law  Enforcement  League  of  January  27, 
1947: 

Law  Enforcement  League, 

Miami,  Fla. 

Gentlemen  :  I  acknowledge  receipt  of  your  letter  of  the  twenty-fourth  instant, 
copies  of  which  you  delivered  to  the  local  press. 

Deputies  have  visited  and  checked  operations  at  the  place  of  business  men- 
tioned in  your  letter  and  found  no  law  violations.  You  may  have  defeated  your 
professed  purpose  by  your  haste  for  publicity. 

Since  the  first  week  of  my  administration  as  sheriff,  certain  individuals  and 
organizatiotns  have  beset  and  harassed  this  office  in  the  public  press  for  the 
purpose  of  embarrassing  and  intimidating  me  in  the  performance  of  my  official 
duties.  Time  after  time  I  have  solicited  the  complaining  and  allegedly  informed 
person  to  persons  to  subscribe  to  the  affidavit  for  search  warrant  prescribed  in 
chapters  933.04,  933.05,  and  933.06,  Florida  Statutes  Annotated,  but  to  date  no 
one  has  been  willing  to  do  more  than  write  a  letter  for  newspaper  purposes  or 
send  in  anonymous  telephone  calls.  The  sections  of  law  to  which  I  refer  are  as 
follows : 

"933.04  Affidavits.— The  right  of  the  people  to  be  secure  in  their  persons, 
houses,  papers  and  effects  against  unreasonable  seizures  and  searches  shall  not 
be  violated  and  no  search  warrant  shall  be  issued  except  upon  probable  cause, 
supported  by  oath  or  affirmation  particularly  describing  the  place  to  be  searched 
and  the  person  and  thing  to  be  seized." 

"933.0.5  Issuance  in  Blank  Prohibited. — A  search  warrant  cannot  be  issued 
except  upon  probable  cause,  supported  by  affidavit  or  affidavits,  naming  or  de- 
scribing the  person,  place  or  thing  to  be  searched  and  particularly  describing 
the  property  or  thing  to  be  seized ;  no  such  warrant  shall  be  issued  in  blank  and 
any  such  warrant  shall  be  returned  within  10  days  after  issuance  thereof." 

"933.06  Sworn  Application  Required  Before  Issuance. — The  judge  or  mag- 
istrate must,  before  issuing  the  warrant,  have  the  application  of  some  person 
for  said  warrant  duly  sworn  to  and  subscribed,  and  may  receive  further  testi- 
mony from  witnesses  or  supporting  affidavits,  or  depositions  in  writing,  to  sup- 
port the  application.  The  affidavit  and  further  proof,  if  same  be  had  or  re- 
quired, must  set  forth  the  facts  tending  to  estalilish  the  grounds  of  the  appli- 
cation or  probable  cause  for  believing  that  they  exist." 

Chapters  901.01  and  901.02,  Florida  Statutes  Annotated,  provide : 

"901.01  Judicial  Officers  To  Be  Committing  Magistrates. — All  judicial 
officers  of  this  State  shall  be  conservators  of  the  peace  and  committing  magis- 
trates, and  may  issues  warrants  against  persons  charged  on  oath  with  violating 
the  criminal  laws  of  the  State,  and  may  commit  offenders  to  jail  or  recognize 
them  to  appear  before  the  proper  court  at  the  next  ensuing  term  thereof  to 
answer  the  charge,  or  may  discharge  tliein  from  custody,  according  to  the  cir- 
cumstances of  the  case  and  may  require  sureties  of  the  peace  when  the  same 
has  been  violated  or  threatened.  When  a  complaint  is  made  to  a  magistrate 
that  an  offense  has  been  committed  within  his  jurisdiction,  he  shall  examine  on 
oath  the  complainant  and  any  witnesses  he  may  produce. 

"901.02  When  Warrant  of  Arrest  To  Be  Issued. — A  warrant  may  be  is- 
sued, for  the  arrest  of  the  person  complained  against  if  the  magistrate,  from  the 
examination  of  the  complainment  and  the  other  witnesses,  if  any,  has  reasonable 
ground  to  believe  that  any  offense  was  committed  within  his  jurisdiction  and 
that  the  person  against  whom  the  complaint  was  made  committed  it ;  provided, 
however,  that  a  warrant  may  be  issued  by  said  magistrates  for  the  arrest  of 
the  person  complained  against,  upon  presentation  to  him  of  affidavits  sworn  to 
by  the  complaining  witness  or  witnesses  before  the  prosecuting  attorney,  pro- 


246  ORGANIZED    CKIME    IN   INTERSTATE;   COMMERCE 

vided  such  prosecuting  attorney  is  authorized  to  administer  oaths  as  a  notary 
public  or  otherwise." 

Chapter  30.15,  Florida  Statutes  Annotated,  requires  this  office  to  execute 
process  of  the  supreme  court,  circuit  court,  county  court,  criminal  court  of  record 
and  justice  of  the  peace  courts.  By  other  statutes,  we  are  required  to  execute 
process  of  the  civil  court  of  record,  the  county  judge's  court,  the  court  of  crimes 
and  the  juvenile  court. 

Chapter  30.19,  P^lorida  Statutes  Annotated,  prescribes  a  penalty  for  failure 
to  execute  any  writ  or  other  process,  civil  or  criminal,  legally  issu9d  and  directed. 
Chapter  144.01  authorizes  the  arrest,  without  warrant  of  any  person  who  is  in 
the  disturbance  of  the  peace. 

Chapter  901.15  provides  for  arrest  without  warrant  by  a  peace  officer  when  a 
felony  or  misdemeanor  has  been  committed  in  his  presence,  or,  in  the  case  of 
felony  only,  when  a  felony  has  been  committed  and  the  officer  has  good  reason  to 
believe  the  person  to  be  ari-ested  committed  it.  This  chapter  also  requires  arrest 
upon  warrant  duly  issued. 

Article  5,  section  15,  of  the  Florida  Constitution,  states  that  the  duties  of  a 
sheriff  "shall  be  pre.scribed  by  law." 

I  have  undertaken  to  apprise  you  of  some  of  the  statutes  which  touch  upon 
the  matter  mentioned  in  your  letter  and  the  duties  of  this  office  in  order  that  you 
may  understand  why  phone  calls,  anonymous  notes,  and  high-pressure  letters 
written  for  newspaper  spread  cannot  be  accepted  by  this  office  as  furnishing 
legal  basis  for  a  raid  or  arrest.  Although  I  am  sure  your  organization  has  the 
purest  of  motives,  you  must  realize  that  the  powers  of  this  office  are  quite  ofteu 
sought  for  purposes  of  spite,  blackmail,  and  other  ulterior  motives,  and  the  people 
are  entitled  to  the  protection  against  false  arrest  and  unlawful  search  that  the 
law  intends  and  contemplates  by  reqixiring  the  complaining  and  allegedly  informed 
person  to  execute  an  affidavit,  except  in  the  cases  which  I  have  mentioned. 

Any  evidence  or  information  of  a  law  violation  which  you  possess  and  desire 
to  furnish  in  sworn  form  should  be  furnished  to  the  county  solicitor,  the  grand 
jury,  the  county  judge,  the  justice  of  the  peace,  or  to  any  circuit  judge. 

If  and  when  I  I'eceive  a  warrant  or  capias  from  any  of  these  judicial  officers, 
I  shall  execute  it  efficiently  and  expeditiously. 

Furthex'more,  I  shall  continue  to  detect  and  arrest  crime  in  this  county  to  the 
best  of  my  ability  and  within  lawful  bounds  wherever  it  is  found.  This  means, 
in  the  case  of  gambling,  that  my  deputies  will  arrest  without  warrant  and  prefer 
charges  in  every  instance  where  they  are  able  to  elude  watchers  and  spotters 
and  gain  entry  peaceably  and  without  force  and  personally  witness  the  acts  you 
say  are  being  committed. 

That  was  the  letter  that  I  sent  to  the  law  enforcement  league,  and 
here  is  the  letter  that  I  sent  to  our  attorney  general,  Tom  Watson,  also 
on  January  27,  enclosing  the  letter  which  I  have  just  read  pertaining 
to  the  laws  of  the  State  of  Florida  on  the  arrests,  warrants,  searches 
and  seizures : 

Hon.  Tom  Watson, 

Attornei/  General,  Tallahassee,  Fla. 

Dear  Sir  :  I  enclose  copy  of  letter  received  by  me  on  the  twenty-fourth  instant 
from  an  organization  called  the  law  enforcement  league,  together  with  my  reply 
of  the  twenty-seventh  instant. 

I  would  appreciate  your  advising  me  as  to  whether,  in  my  reply,  I  have  correctly 
stated  and  interpreted  my  official  duties  in  the  matter  and  if  not,  wherein  I  am 
in  error. 

Thanking  you  for  this  service,  I  am 

Yours  very  truly. 

This  is  the  letter  from  the  attorney  general  addressed  to  me  on 
February  4,  1947. 

Hon.  Jimmy  Sullivan, 

Sheriff  of  Dade  County,  Court  House,  Miami,  Fla. 
Dkar  Mr.  Sitllivan  :   This  will  acknowledge  receipt  of  your  letter  of  January 
27,  last,  as  well  as  the  enclosed  copy  of  letter  addressed  to  the  law  enforcement 
league  under  date  of  January  27,  also. 

Please  be  advised  that  your  reply  to  a  letter  from  said  league  is  entirely  sat- 
isfactory and  appropriate. 
Sincerely  yours, 

J.  Tom  Watson,  Attorney  General. 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  247 

I      The  Chairman.  Let  this  correspondence  be  filed  as  exhibit  No.  128. 

I  Mr.  Sullivan.  I  have  here  the  opinion  from  the  supreme  court  of 
the  January  term,  dated  January  17,  1950,  which  the  opinion  was 
filed,  and  which  I  took  up  with  my  attorney  for  a  breakdown  of  the 
opinion  as  to  my  duties  and  what  I  should  do  in  this  protection  of  my 
office,  with  search  warrants,  with  the  issuance  of  search  warrants. 
It  reads  (reading)  : 
Re :  Search  warrants. 

Jimmy  Si^tllivan, 

Sheriff,  Court  House,  Miami,  Fla. 

Dear  Sheriff:  We  call  your  attention  to  an  opinion  of  the  Supreme  Court  of 
Florida  tiled  January  17,  1950,  which  imposes  considerably  more  of  a  burden 
upon  peace  officers  in  the  obtaining  of  a  valid  search  warrant  under  Florida  law. 

In  the  future,  the  person  applying  for  the  warrant  must  himself  be. able  to 
particularly  describe  the  place  to  be  searched,  the  things  to  be  searched  for, 
and  the  perscm  or  persons  to  be  arrested,  or  if  he  has  gained  his  information 
as  a  result  of  another  person's  investigation,  he  must  state  particularly,  in  the 
words  of  the  court,  "how  the  affiant  came  by  the  intelligence"  and  if  through 
someone  else,  the  other  person's  name  must  be  disclosed  together  with  such 
further  information  as  "would  be  competent  in  the  trial  of  the  offense  before 
a  jury  and  would  lead  a  man  of  prudence  and  caution  to  believe  that  the 
offense  has  been  committed." 

Note  the  concluding  language  of  the  court  which  states  that :  "We  are  not 
unaware  that  guilty  persons  may  go  free  where  convincing  evidence  against 
them  is  held  inadmissible  because  obtained  by  defective  search  warrants.  But 
our  paramount  concern  is  for  the  guaranty  in  the  organic  law  against  unrea- 
sonable searches.  We  have  spoken  on  this  subiect,  too,  in  Cooper  v.  State, 
supra,  where  we  approved  Judge  Cooley's  comment  that  'It  is  oftentimes  better 
that  crimes  should  go  unpunished  than  that  citizens  should  be  liable  to  have 
their  premises  invaded.'  " 

In  view  of  the  above,  a  peace  officer  will  no  longer  be  able  to  make  a  proper 
affidavit  or  search  warrant  upon  the  basis  of  information  furnished  by  another 
without  fully  revealing  the  identity  of  the  other  person,  the  manner  by  which 
he  gained  his  knowledge,  and  all  other  facts  pertinent  to  or  bearing  uiwn  the 
other  person's  investigation  and  his  entire  connection  with  the  matter.  This 
means  that  information  furnished  by  undercover  operators  or  citizens  who  do 
not  wish  to  have  their  identity  disclosed  no  longer  can  be  used  without  publicly 
recording  all  names  and  other  factors  involved. 

A  copy  of  the  supreme  court  opinion  referred  to  is  hereto  attached. 
Very  truly  yours. 

The  Chairman.  Who  is  that  letter  from  ? 

Mr.  Sullivan.  That  is  from  Mr.  Hunt  here.  This  is  the  letter, 
and  that  is  the  opinion  of  the  Supreme  Court  of  the  State  of  Florida 
[indicating]. 

The  Chairman.  Is  Mr.  Hunt  the  county  attorney  or  is  he  your 
personal  attorney  ? 

Mr.  Sullivan.  Mr.  Hunt  is  my  attorney  for  the  office,  the  sheriff's 
office. 

The  Chairman.  Is  that  a  county  position,  or  did  you  just  employ 
him  ?    In  other  words,  who  pays  him  ? 

Mr.  Sullivan.  He  is  paid  out  of  the  fees  from  the  sheriff's  office. 

The  Chairman.  Let  this  letter  and  the  opinion  be  filed  as  exhibit 
No.  129. 

(The  opinion  referred  to  appears  in  the  appendix  on  p.  759.) 

The  Chairman.  Is  this  position  of  attorney  for  the  sheriff's  office 
a  legally  constituted  office  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  Do  you  mean  that  it  is  set  up  by  statute  ? 

68958 — 50 — pt.  1 17 


248  ORGANIZED    OEaME    IN   INTERSTATE    COMMERCE 

Mr.  Sullivan.  Yes,  sir;  it  is.  You  see,  we  have  so  much  civil  liti- 
gation in  our  office  that  daily  we  have  to  refer  to  our  attorneys. 

The  Chairman.  Well,  you  have  county  solicitors;  don't  you? 

Mr.  Sullivan,  We  have  county  solicitors,  but  they  don't  advise  us 
on  these  things. 

The  Chairman.  Would  they  advise  you  on  these  things  if  you 
asked  them  to  ? 

Mr.  Sullivan.  I  have  talked  with  them,  but  they  tell  me  to  get 
together  with  my  attorney. 

The  Chairman'.  And  the  sheriff  here  has  always  had  an  attorney 
for  his  office,  separate  from  any  others  ? 

Mr.  Sullivan.  Yes,  sir.    I  believe  they  all  have  attorneys. 

The  Chairman.  What  does  that  position  pay?  Do  you  know  what 
it  pays  ? 

Mr.  Sullivan.  It's  either  $300  or  $350  a  month. 

The  Chairman.  That  is  customary  in  Florida  for  the  sheriff  to 
have  an  attorney  for  his  office  to  advise  him  about  matters? 

Mr.  Sullivan.  Yes;  it  is,  because  we  have  so  much  litigation  that 
the  duly  elected  and  appointed  attorneys  don't  have  time  to  handle. 

The  Chairman.  Does  the  sheriff  select  the  attorney  for  the  sheriffs 
office? 

Mr.  Sullivan.  Yes ;  he  does. 

The  Chairman.  Mr.  Hunt  has  been  your  attorney  ever  since  you 
have  been  sheriff  ? 

Mr.  Sullivan.  No ;  he  hasn't. 

The  Chairman.  Whom  did  you  have  before  ? 

Mr.  Sullivan.  I  had  a  Mr.  Hollis  Einehart. 

The  Chairman.  Did  the  sheriff  before  you  have  an  attorney  for 
the  sheriff's  office  ? 

Mr.  Sullivan.  Yes ;  he  did. 

The  Chairman.  All  right,  sir;  you  go  ahead.  I  simply  wanted  to 
clear  that  up. 

Mr.  Sullivan.  Senator,  I  would  like  to  show  here  what  we  do  in 
our  office  with  the  few  men  that  I  have. 

The  Chairman.  Well,  you  have  quite  a  long  document  here. 

Mr.  Sullivan.  That  is  true,  but  there  is  some  of  the  substance  in 
there  that  I  would  like  to  bring  out. 

The  Chairman.  You  may  file  the  document  as  exhibit  No.  130,  and 
you  can  make  any  exijlanation  you  want,  Mr.  Sullivan,  or  bring  out 
any  particular  point  you  wish. 

(Statistics  for  sheriff's  office,  Dade  County,  Fla.,  1945  through  1949, 
ap])ear  in  the  appendix  on  pp.  760-765,  as  exhibit  No.  130.) 

Mr.  Sullivan.  Thank  you.  I  am  going  to  start  with  the  past  full 
year  of  1949.  In  the  year  of  1949  our  office  handled  8,301  prisoners. 
Fines  and  forfeitures  for  that  year  were  $131,942.56.  We  had  con- 
victions of  5,777. 

Prisoners  sent  to  the  State  penitentiary  were  277.  Warrants  and 
capiases  served  were  4,693.  Homicide  investigations  were  as  follows  : 
Murder,  73 ;  fatal  accidents,  53 ;  rape,  70 ;  suicide,  63 ;  drowning,  24 ; 
and  natural  deaths,  158. 

We  want  to  bring  out  the  number  of  persons  fingerprinted  and 
photographed,  listed  according  to  crime  committed : 


ORGAJs^ZED    CRIME    IN   INTERSTATE    OO^MJVIERCE  249 

Gambling,  44;  operating  a  gambling  house,  494;  lottery,  19;  illegal 
possession  of  punchboards,  10 ;  murder,  ;i2— there  is  something  wrong 
there ;  this  is  not  right — manslaughter,  23 ;  rape,  20, 

The  number  of  arrests  for  illegal  possession  of  slot  machines  is  7, 
and  the  number  of  machines  seized  is  20. 

That  was  in  the  year  of  1949. 

And  here  are  the  statistics  for  the  month  of  February  1,  1950^ 
through  March  15, 1950.  That  is  45  days ;  and  I  would  like  to  present 
this  along  with  our  other  information.  I  have  much  more  here.  I 
have  each  month  in  detail,  of  what  our  office  does  with  gambling  and 
the  operating  of  gambling  places. 

This  is  for  January  1950 :  Operating  of  gambling  houses,  ?A — this 
is  for  persons  fingerprinted  and  photographed,  listed  according  to 
crime  connnitted — lottery,  12 ;  gambling,  12 ;  and  that  is  for  the  month. 
of  January. 

The  Chairman.  The  committee  will  be  glad  to  receive  these  as  ex- 
hibit Nos.  131  and  132. 

(Statistics  for  sheriff's  office,  February  1-Marcli  15,  1950,  were 
marked  "Exhibit  No.  131,"  and  appear  in  the  appendix  on  p.  7(55. 
Report  on  activities  of  sheriff's  office  for  January  1950,  dated  Febru- 
ary 6,  1950,  was  marked  "Exhibit  No.  132"  and  appears  in  the 
appendix  on  p.  766.) 

The  Chairman.  Senator  Hunt  has  a  question  he  wishes  to  ask. 

Senator  Hunt.  Sheriff,  you  mentioned  two  figures — 7  and  20 — w^ith 
I'ef  erence  to  slot  machines.     What  was  the  7  figure  ? 

Mr.  Sullivan.  That  was  the  number  of  persons  arrested;  and  the 
20  was  the  number  of  slot  machines  seized.     Just  a  minute 

Senator  Hunt.  Well,  that  answers  my  question  sufficiently. 

Mr.  Sullivan.  The  number  of  arrests  made  for  illegal  possession 
of  slot  machines  was  7.     The  number  of  slot  machines  seized  was  20. 

Senator  Hunt.  Now,  Sheriff,  do  you  know  how  many  permits,  $100 
Federal  permits,  were  paid  here  in  the  county  in  1948  on  slot  machines  ? 

Mr.  Sullivan.  Senator  Hunt,  I  wouldn't  know  that,  for  this  reason  : 
We  take  every  slot  machine  that  we  can  find  in  our  county. 

Senator  Hunt.  It  would,  however,  run  up  into  the  thousands,  would 
it  not? 

Mr.  Sullivan.  Perhaps  it  would;  but  the  machines  have  not  been 
in  Dade  County — I  mean,  operating  in  Dade  County. 

Senator  Hunt.  Would  you  mind  giving  us  the  breakdown  on  the 
277  that  were  sentenced  to  the  penitentiary,  if  you  have  it?  If  you 
don't  have  it,  it  is  not  too  material. 

Mr.  Sullivan.  Well,  I  don't  have  any  breakdown  with  the  exception 
of  the  time  that  they  all  served.  That  is  all  I  could  Sfive  you  on 
that.  ^ 

Senator  Hunt.  Could  you  tell  me  if  any  of  them  were  bookies? 

Mr.  Sullivan.  I  can't  tell  you  definitely,  but  I  don't  believe  that 
any  of  them  were. 

Senator  Hunt.  That  is  all  I  have  to  ask,  Mr.  Chairman. 

Mr.  Sullivan.  Now,  just  for  comparison,  we  go  along  to  the  year 
of  1948,  and  here  are  the  statistics  of  this  office : 

Prisoners  handled  were  8,903;  fines  and  forfeitures,  $105,101.88. 
It  goes  on  through  the  subpenas  which  were  served:  14,137.  The 
warrants  and  capiases  served  were  4,587.  The  total  homicide  investi- 
gations were  355. 


250  ORGANIZED   C'RITME    IN   INTERSTATE    COMMERCE 

Now,  these  homicide  investigations  are :  Murder,  55 ;  fatal  accidents, 
36 ;  rape,  68 ;  suicide,  51 ;  drowning,  40 ;  natural  deaths,  105.  In  these 
investigations,  if  there  is  any  peculiar  circumstance  surrounding  any 
death  that  we  find  in  Dade  County,  wherever  it  happens  to  be,  our 
office  or  a  deputy  sheriff,  or  one  of  our  special  deputy  sheriffs,  makes 
investigations  of  these  homicides  that  occur  in  Dade  County. 

Assaults  with  deadly  weapons,  attempted  rape  were  361 ;  burglary, 
robbery,  and  miscellaneous  investigations  were  1,361;  which  made  a 
total  of  investigations  of  2,077. 

Prisoners  fingerprinted  were  2,760. 

Senator,  why  I  like  to  bring  this  out  here  is  that  it  has  been  openly 
rumored  and  stated  that  this  office,  my  office,  does  nothing  whatsoever. 
This  is  perhaps  the  first  time  that  the  people  of  our  county  have  had 
a  chance  to  find  out  what  the  sheriff's  department  does  in  Dade  County. 
If  we  have  convictions,  you  read  about  them  maybe  on  the  back  page 
or  maybe  in  the  inside  or  the  middle  of  the  paper.  Most  of  the  time 
what  we  get  in  the  paper  is  absolute  ridicule. 

It  hasn't  been  10  days  since  the  papers  have  been  sort  of  putting 
me  on  the  back  page;  but,  up  until  that  time,  anytime  me  or  my  office, 
or  anyone  having  anything  to  do  with  me,  was  mentioned  in  the 
newspapers  he  was  mentioned  in  a  berating  manner  or  cast  off  in  some 
way.  And  when  you  have  6  years  of  this,  continuously — these  papers 
did  everything  possible  that  they  could  do  in  the  last  election,  by  lies 
and  everything  else,  in  trying  to  defeat  me,  with  their  two  powerful  I 
radio  stations  and  in  every  publication  that  came  out.  They  even  at 
one  time  refused  to  put  an'ad  in  the  paper  for  me. 

It  has  been  a  one-sided  fight  throughout.  They  have  generated  these 
law-enforcement  leagues;  they  have  made  our  county  look  awful. 
They  have  scandalized  us  throughout  the  whole  United  States.  That 
is,  o'ur  two  papers.  And  I  don't  have  to  tell  anybody  about  that. 
Any  of  you  people  who  live  all  over  the  United  States  can  pick  up  one 
of  these  papers  and  say,  "Better  be  careful  going  to  Dade  County. 
They'll  cut  your  head  off ;  jerk  you  in  some  dark  alley  and  cut  your 
head  off."  It  started  10  days  after  I  took  office,  and  it  has  been  with 
me  ever  since. 

The  people  here  in  Dade  County  are  well  aware  of  the  fact  that  I 
was  elected  the  last  time  with  a  big  majority. 

The  Chairman.  By  how  much  ? 

Mr.  Sullivan.  I  believe  it  was  17,000.  There  were  more  votes  cast 
in  the  sheriff's  race  in  Dade  County  than  in  any  other  race;  more  votes 
than  in  any  other  race.     That  was  in  the  actual  election. 

The  Chairman.  Were  these  2-year  terms  that  you  were  elected  for? 

Mr.  Sullivan.  Four-year  terms.  I  was  elected  the  first  time  in 
1944,  after  trying  to  join  each  branch  of  our  United  States  service 
while  I  was  still  a  police  officer  in  downtown  Miami.  Then,  when  I 
failed  to  get  into  the  service,  well,  I  thought  that  I  could  be  elected 
sheriff  of  Dade  County,  and  I  ran  for  this  office,  and  the  people 
elected  me. 

In  the  year  of  1948  the  number  of  arrests  for  illegal  possession  of  slot 
machines"  was  6 ;  the  number  of  slot  machines  seized  was  10. 

The  Chairman.  What  year  was  that? 

Mr.  Sullivan.  That  was  the  year  of  1948. 

Tlie  Chairman.  How  many  slot  machines  were  seized  ? 


ORG'ANIZED'   CRIME    IN   INTERSTATE    OOMMEROE  251 

Mr.  Sullivan.  Ten.  We  had  at  that  time  eight  cases  of  gamblino;. 
We  don't  charge  people  with  gambling,  becanse  they  get  off  witli  a 
fine  of  $10  to  $25,  or  something  like  that.  We  charge  them  with  oper- 
ating a  gambling  house.  If  the  horses  are  not  here,  I  believe  the  fine 
is  either  $200  or  $250.  When  the  horses  are  running  in  Dade  County, 
the  fine  is  $500.  We  had  2G9  cases  of  operating  gambling  houses; 
illegal  possession  of  punchboards,  2;  murders,  7;  manslaughter,  15; 
rape,  15. 

The  Chairman.  The  committee  will  study  these  reports  that  you 
have  prepared.  Sheriff  Sullivan,  and  they  will  be  made  exhibits  to 
your  testimony. 

Mr.  Sullivan.  I  might  also  say  in  here,  Senator,  that  this  office, 
in  my  first  4  years  of  being  sheriff,  earned  $2:35,000  in  excess  fees  for 
our  county.  That  was  earned  and  turned  back  to  the  operating  ex- 
penses of  our  county,  turned  back  to  our  taxpayers. 

Previous  to  my  taking  office,  the  most  that  was  earned  was  $58,000 
in  4  years. 

The  Chairman.  You  are  not  on  a  fee  basis.  You  are  on  a  salary 
basis ;  are  you  not  ? 

Mr.  Sullivan.  My  office  is  strictly  on  a  fee  basis.  I  make  a  budget, 
and  I  can  operate  up  to  that  budget,  providing  I  make  enough  money 
to  pay  with,  which  I  have  always  done,  and  my  budget  today  is  pretty 
big. 

We  have,  I  believe,  105  in  our  sheriff's  department,  and  I  believe 
13  or  14  of  those  men  are  deputy  sheriffs  who  have  school  assigmiients 
only.  They  are  older  men.  They  work  in  our  county  schools  in  the 
unincorporated  areas. 

We  have  33  of  our  men  working  on  our  road  patrols,  and  the  rest 
of  them  are  deputy  sheriffs,  of  which  we  have  23  that  are  in  the 
civil  department,  which  serves  all  of  the  civil  processes  of  our 
county. 

We  have  11  of  them  that  work  up  at  the  desk  and  in  the  jail  as 
jailers.  We  just  lost  a  couple  of  prisoners,  but  they  broke  out  of  a 
rusty  part  of  our  section  of  the  jail. 

The  Chairman.  Is  your  salary  fixed  by  law,  or  just  how  is  it 
fixed? 

Mr.  Sullivan.  Senator,  the  salary  is  fixed  by  law. 

The  Chairman.  What  is  your  salary  ? 

Mr.  Sullivan.  Well,  now' it's  $12,000. 

The  Chairman.  When  did  it  get  to  be  $12,000  ? 

Mr.  Sullivan.  At  the  last  legislature.     That  was  2  years  ago. 

The  Chairman.  So,  your  salary  during  1949  was  $12,000? 

Mr.  Sullivan.  Yes. 

The  Chairman.  And  your  current  salary  is  at  the  rate  of  $12,000 
a  year  ? 

Mr.  Sullivan.  It  is  now. 

The  Chairman.  Before  then  it  was  how  much  ? 

Mr.  Sullivan.  $10,000. 

The  Chairman.  In  addition  to  that  do  you  get  any  fees  out  of  the 
sheriff's  office  ? 

Mr.  Sullivan.  I  make  a  correction  on  the  salary  there.  You 
asked  me  "before  then."  Before  then  it  was  $7,500.  AVlien  I  went  in 
the  office  my  salary  was  $7,500  yearly. 


252  ORGAXIZED   ORfTME    IN   ESTTER'STATE    OOMME'RC'E 

The  Chairman.  During  what  years  was  it  $7,500  ? 

Mr.  Sullivan.  It  was  '45,  '46';  I  believe  a  part  of  '47,  maybe  the 
first  2  or  3  or  maybe  4  months  of  '47. 

The  Chairman.  Then  the  remaining  part  of  '47  and  all  of  '48 
it  was  $10,000? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  And  in  '49  and  this  part  of  '50  it  is  $12,000? 

Mr.  Sullivan.  That's  right. 

The  Chairman.  How  about  your  deputies;  who  fixes  their  sal- 
aries ? 

Mr.  Sullivan.  I  fix  their  salaries. 

The  Chairman.  They  don't  participate  in  any  fees  above  their 
salary  ? 

Mr.  Sullivan.  No,  they  don't.  And  regardless  of  how  much  I 
earn  I  still  get  what  is  prescribed  by  law  as  my  salary. 

The  Chairman.  Whether  you  earn  it  or  not  ? 

Mr.  Sullivan.  Yes,  sir — No,  no,  no ;  if  you  don't  earn  it  you  don't 
get  it. 

The  Chairman.  You  mean,  if  your  fees  don't  make  up  that  much  ? 

Mr.  Sullivan.  If  you  want  to  put  it  that  way.  If  your  fees 
don't  make  it  we  don't  get  it.  If  we  don't  have  it  in  the  office  we 
don't  get  the  money.  I  don't  know  just  what  will  happen.  We  will 
just  have  to  cut  down,  that's  all. 

The  Chairman.  But  you  have  always  gotten  your  full  salary 
because  you  have  always  had  a  surplus  ? 

Mr.  Sullivan.  Yes.  I  have  always  turned  in  considerable  money 
to  our  county.    We  have  complete  records  of  that  in  the  office. 

The  Chairman.  Now,  let  us  get  all  of  your  records  in  here.  Sheriff 
Sullivan.  We  don't  want  to  hurry  you,  but  as  you  know,  we  have 
many  witnesses  to  hear. 

Mr.  Sullivan.  I  would  like  to  make  a  little  clarification  on  some 
of  these  things,  which  I  attempted  to  do  a  while  ago  on  the  homicide 
investigations  that  we  have.  I  don't  know  whether  it  was  thoroughly 
understood  or  not  that  in  all  of  the  deaths  that  we  have  in  our  county 
if  there  is  anything,  any  surrounding  circumstances  at  all,  they  are 
investigated  by  our  homicide  department;  and  even,  at  times,  some 
natural  deaths  are  investigated. 

I  have  two  previous  records  of  my  predecessors  here. 

Senator  Hunt.  Mr.  Chairman,  can't  those  just  be  taken  into  the 
record?  I  don't  know  that  we  need  to  discuss  the  records  of  his 
predecessors  in  office. 

The  Chairman.  We  will  have  them.  The  point  that  you  want  to 
make  is  that  what  you  have  done  compares  favorably  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  All  right,  sir;  they  will  be  filed  as  exhibits  to  your 
testimony.  (Statistics  for  sheriff's  office,  1944  and  1943,  were  marked 
''Exhibit  No.  133,"  and  appear  in  the  appendix  on  p.  768.) 

Mr.  Sullivan.  Here  is  a  photograph  of  some  of  the  men  that  took 
part  in  a  raid  that  I  believe  they  spoke  of  yesterday  [handing  docu- 
ment to  chairman].  Those  are  some  of  the  men  that  were  there  in  the 
raid  that  took  place  yesterday. 

It  took  place  up  in  back — I  don't  know  what  the  name  of  the  hotel 
was.    It's  an  old  hotel,  back  of  the  Army  and  Navy  Club  at  One  Hun- 


ORGANIZED    CRIME    IN    INTERSIATE    COMMERCE  253 

dred  and  Twenty-first  Street,  west  of  the  boulevard,  about  a  distance 
of  three  blocli:s. 

Tlie  Chairman.  Tliis  picture  which  you  have  lumded  me  is  a  pic- 
ture, apparently,  of  a  racehorse  wire  set-up. 

Mr.  Sullivan.  Yes,  it  is. 

The  Chairman.  For  the  transmission  of  racing  information? 

Mr.  Sullivan.  Yes,  sir.  There  was  eight  trunk  lines  coming  into 
this,  serving  there  from  downstairs. 

The  Chairman.  Who  are  the  people  in  this  picture,  Sheriff  Sullivan  ? 

Mr.  SuLi.iVAN.  This  one  here  [indicating]  is  Mr.  Toni,  who  was 
here  yesterday. 

The  Chairman.  We  remember  Mr.  Toni. 

Mr.  Sullivan.  And  this  is  Mr. 

The  Chairman.  Gasque  ? 

Mr.  Sullivan.  Yes.  Buddy  Gasque.  And  this  is  one  of  my  men, 
George  Patton;  and  this  is  also  one  of  my  men.  Red  Hughes. 

The  Chairman.  Let  tliat  be  filed  as  an  exhibit.  (Photograph  re- 
ferred to  was  marked  "Exhibit  Xo.  134"  and  is  on  file  with  the  com- 
mittee. )     Did  you  have  something  further  you  wanted  to  say  about  it  ? 

Mr.  Sullivan.  Well,  I  thought  it  might  possibly  clear  up  some 
matters  there,  which  we  have  many  of  these  types  of  raids  in  our 
countj^;  which  we  have  had  many  of  them.  For  the  record  here  are 
some  of  our  raids  in  1950.  This  was  submitted  to  me  by  my  chief 
criminal  deputy,  Claude  High,  who  is  the  criminal  investigator. 

The  Chairman.  Will  you  describe  it.  Sheriff  Sullivan? 

Mr.  Sullivan.  Yes,  sir.  These  are  the  raids  we  made  in  different 
places  in  our  county,  and  the  telephones  and  the  wire  service  equip- 
ment that  were  received,  that  w^e  took  into  possession. 

On  March  5,  1949,  the  Arlington  Hotel,  455  Ocean  Drive,  Miami 
Beach :  We  got  six  telephones  and  w^ire  service  equipment. 

The  Chairman.  Is  that  for  this  year  or  last  year? 

Mr.  Sullivan.  This  is  the  last  part  of  last  year  and — I'll  read  what 
it  says  here : 

The  following  is  a  partial  listing  of  places  that  have  been  raided  by  this  depart- 
ment where  three  or  more  phones  have  been  confiscated.  This  also  includes 
other  apparatus  used  in  bookmaking  establishments. 

The  Chairman.  All  right.  The  committee  will  be  glad  to  have 
this  as  an  exhibit  to  your  testimony.  (Memorandum  dated  July  12, 
1950,  listing  places  raided  by  sheriff's  office,  Dade  County,  was  marked 
"Exhibit  No.  135,"  and  appears  in  the  appendix  on  p.  769.) 

Mr.  Sullivan.  Would  you  like  to  hear  about  the  phones  and  what- 
not that  we  have  confiscated  ? 

The  Chairman.  Tell  us  anything  you  want  to  tell  us  about  it. 

Mr.  Sullivan.  All  right.  We  have  six  telephones  and  wire  service 
equipment  from  the  Arlington  Hotel.  We  have  five  phones  that  were 
taken  up  in  North  Miami,  where  an  arrest  was  made.  I  believe  the 
man  was  Louis  Kaufman.  We  have  seven  telephones  from  the  Avia- 
tion Building,  Northwest  Twenty-seventh  Avenue  and  Thirty-third 
Street.  From  6505  Northwest  Eighteenth  Avenue,  6  telephones 
(used),  15  telephones  (new,  in  boxes),  1  Army  field  telephone  set,  and  2 
head  sets  were  taken.  At  139  Lindsay  Court,  Hialeah,  Fla.,  eio:ht 
telephones  and  radio  equipment  were  taken. 


254  ORGANIZED   CHIME    IN  INTEKSTATE    OOMME'RCE 

On  January  4,  1950,  at  2194  South  Red  Road,  three  telephones  and 
equipment;  January  13,  1950,  2360  Northwest  Eighty-first  Street  we 
had  five  telephones  and  equipment ;  from  207  West  Flagler,  January 
19,  1950,  four  telephones  and  equipment;  2180  Northwest  Seventh 
Avenue,  four  telephones  and  equipment. 

Now,  these  are  on  the  beach  at  the  different  hotels. 

At  the  Versailles  Hotel  there  were  three  telephones.  At  the  Clay 
Hotel  there  were  three  telephones.  At  the  Good  Hotel  there  were 
three  telephones.  At  the  Sea  Isle  Hotel,  three  telephones;  the  Monte 
Carlo  Hotel,  three  telephones;  the  Martinique  Hotel,  four  telephones^ 
and  the  Delmonico  Hotel,  three  telephones. 

At  the  Tower  Radio  Shop— that  was  April  6,  1950— at  718  South- 
west Fifteenth  Avenue,  five  telephones  and  equipment;  Suburban 
Club  Apartments,  1539  Northeast  One  Hundred  and  Twenty-first 
Street — that  is  the  information  I  gave  you  there  [pointing  to  group  of 
exhibits].  From  the  Suburban  Club  Apartments,  one  six  positions 
(12-line  rotary)  switchboard  with  20  extra  phones  confiscated,  and 
other  equipment. 

April  14,  1950,  at  Greentree  Hotel,  110  Northeast  Second  Avenue^ 
six  phones  and  otlier  equipment. 

At  the  Betsy  Ross  Hotel,  April  25,  1950,  at  1044  Ocean  Drive, 
Miami  Beach,  three  tele])hones ;  and  at  210  Twenty-first  Street,  three 
telephones.     The  total  phones  confiscated  for  that  period  were  137. 

The  Chairman.  Let  me  see  that.  Sheriff  Sullivan.  That  is  dated 
July  12,  1950.  This  apparently  covers  a  period  beginning  March 
1949.  As  to  these  telephones,  do  you  mean  that  they  are  just  tele- 
phones that  you  raided  and  took  out? 

Mr.  Sullivan.  They  are  horsebooks.  Arrests  were  made  at  each 
one  of  those  places.  I  can't  tell  you  offhand  how  many  arrests  were 
made,  but  the  records  are  in  my  books,  the  daily  arrest  sheets. 

The  Chairman.  Do  any  of  these  descriptions  fit  the  Roney  Plaza  ? 

Mr.  Sullivan.  No,  they  don't. 

The  Chairman.  You  know  that  Mr.  Erickson  has  had  quite  an  op- 
eration there  for  some  time,  do  you  not  ? 

Mr.  Sullivan.  Yes.     I  have  heard  the  testimony. 

The  Chairman.  You  have  known  that  for  some  time,  have  you  not? 

Mr.  Sullivan.  No,  I  haven't. 

The  Chairman.  Hasn't  it  been  common  knowledge  for  some  time? 

Mr.  Sullivan,  There  was  an  arrest;  I  believe  that  may  have  been 
in  '47,  '48.  I'm  not  sure.  I  couldn't  say  positively,  but  I  believe 
that  there  was  an  arrest  for  horsebooking  in  the  Roney  Plaza  Hotel. 

The  Chairman.  You  remember,  do  you  not,  Mr.  Sullivan,  that  there 
were  a  lot  of  complaints  made  about  the  previous  operator  there,  Mr. 
Salvey,  in  the  newspapers,  and  that  the  operators  of  the  Roney  Plaza 
decided  that  they  had  better  cliange  operators,  and  they  changed  from 
Mr.  Salvey  to  Mr.  Erickson  ?  That  has  been  in  the  newspapers,  hasn't 
it? 

Mr.  Sullivan.  Well,  if  it  has,  I  haven't  read  it. 

The  Chairman.  How  about  the  Boulevard  Hotel ;  do  you  see  any 
description  on  here  of  the  Boulevard  Hotel? 

Mr.  Sullivan.  I  didn't  mention  any  just  now. 

The  Chairman.  Is  that  operated,  or  was  it  operated,  by  Abe  Allen- 
berir  ? 


ORGANIZED    CMME    IN    INTERSTATE    OOIMMERCE  255 

Mr.  Sullivan.  Well.  Abe  Allenberg  used  to  operate  it. 

The  Chairman.  Well,  he  had  a  wire  service  there,  did  he  not  ? 

Mr.  Sullivan.  He  what  I 

The  Chairman.  He  had  a  wire  service  there.  You  knew  that, 
didn't  you? 

]\Ir.  Sullivan.  I  can't  say,  Senator. 

The  Chairman.  Well  now,  you  know  he  was  at  the  Wofford  and 
then  he  was  at  the  Boulevard  and  his  gang  went  from  one  hotel  to 
the  other  with  him  ? 

JNIr.  Sullivan.  I  believe  he  managed  both  hotels. 

The  Chairman.  What  ? 

Mr.  Sullivan.  I  believe  he  managed  the  Wofford  and  the  Boulevard. 

The  Chairman.  He  managed  the  Wofford  during  the  time  when 
Costello  and  Adonis  and  all  of  these  people  were  big  operators? 

Mr.  Sullivan.  It  could  be.     I'm  not  aware  of  the  fact. 

The  Chairman.  You  have  seen  it  in  the  papers,  have  you  not,  the 
pictures  of  these  people  in  the  papers,  as  guests,  and  so  ferth? 

JNIr.  Sullivan.  Yes,  sir;  from  time  to  time  there  have  been  some 
pictures;  yes,  sir.  But  there  are  all  kinds  of  names  which  I  have,  a 
number  of  names  here,  and  a  number  of  pictures.  And  wliile  we  are 
speaking  of  the  undesirable  people  who  came  into  our  community  from 
time  to  time  and  who  are  not  committing  a  crime  of  some  kind  or  have 
not  been  wanted,  or  are  not  wanted  in  some  other  area  or  in  our  area, 
would  3^011  or  some  other  gentleman  tell  me  what  we  can  do  about  it  ? 
Our  Government  can't  arrest  them. 

The  Chairman.  Why? 

Mr.  Sullivan.  Because  what  are  they  wanted  for?  If  we  have  got 
a  record  on  them  we  can  pick  them  up.  If  we  have  a  record,  regard- 
less of  who  comes  in  here,  if  we  have  a  record  and  papers  for  him,  we 
Avill  pick  him  up.  If  I  find  that  he  is  doing  something  illegal  I  will 
pick  him  up  or  have  one  of  my  men  pick  him  up. 

The  Chairman.  Have  you  read  about  the  conspiracy  to  violate  the 
gambling  laws  of  the  State  of  Florida  ? 

Mr.  Sullivan.  I  heard  about  it. 

The  Chairman.  You  have  your  attorney  here.  He  has  been  your 
attorney  for  quite  a  number  of  years.  Hasn't  he  advised  you  about 
that?  He  has  advised  you  about  certain  laws  here,  matters  of  search 
warrants.  Has  he  advised  you  about  the  conspiracy  to  violate  the 
gambling  laws  of  the  State  of  Florida  I  About  all  you  need  are  the 
records  of  the  financial  investments  of  these  big  boys. 

Mr.  Sullivan.  Well,  those  things.  Senator,  could  be.  However,  if 
they  are  in  the  operation  of  some  form  of  illegal  activity  and  so  that 
we  can  find  them  and  arrest  them,  it  will  be  done. 

Now,  here  we  had  a  picture  painted  to  us  yesterday  of  the  wire 
service,  the  interstate  communications  throughout  our  whole  eastern 
part  of  our  United  States,  possibly  in  every  State ;  but  here  was  this 
picture  here,  and  there  have  been  hours  and  untold  days  of  obtaining 
this  information. 

Xow,  that  information  was  taken  yesterday  under  oath,  but  why 
wouldn't  it  be  so  much  better  if  that  was  taken  under  oath  publicly, 
before  you  here,  and  the  people  of  the  United  States  to  come  down 
here  and  prescribe  to  some  oath  in  our  local  government  and  let  us 
take  care  of  those  people  if  they  know  that  they  are  guilty  of  some 
crime  ? 


256  ORGAJ^IZED    CRIME    IN   INTERSTATE    OOMME'RCE 

The  Chairman.  Well,  I  suppose  the  people  of  the  crime  commission 
have  been  here  ready  to  give  you  any  information  that  they  can  give 
you. 

Mr.  Sullivan.  Well,  you  suppose  that,  and  I  don't  suppose  that 
they  have.  These  people,  Senator,  have  been  here  ready  to  make  head- 
lines in  the  newspapers  any  way  and  any  time  that  they  can;  any- 
thing to  sell  a  sheet  of  paper. 

The  Chairman.  Have  you  called  on  them  for  cooperation? 

Mr.  Sullivan.  Yes,  sir.  What  do  I  get  ?  "You  are  the  law-enforce- 
ment officer ;  we're  not.  We  are  going  to  scandalize  you  and  our  prop- 
erty owners  and  taxpayers  of  our  county.  We're  not  going  to  give 
you  nothing.  We're  going  to  run  to  the  Miami  Herald  and  the  jMiami 
Daily  News  with  it."  And  you  will  find  that  I  am  not  alone  in  saying 
that.  The  people,  the  whole  group  of  people  sitting  in  the  back  of 
us,  who  know  Dade  County,  will  also  tell  you  that.  Sure,  I'm  for  law 
enforcement. 

The  Chairman.  This  might  be  a  very  good  place,  Mr.  Sullivan,  to 
read  into  the  record  a  letter.  Did  you  receive  the  original  of  this 
letter  ?  I  believe  this  is  your  signature  and  this  is  the  return  receipt 
[indicating  and  handing  same  to  Sheriff  Sullivan] .  Just  say  whether 
you  received  it  or  not. 

Mr.  Sullivan.  Well,  you  said  to  read  this.  I  was  seeing  if  I  was 
familiar  with  it. 

The  Chairman.  I  assumed  that  you  were  familiar  with  it. 

Mr.  Sullivan.  I  might.  I  put  my  name  on  anything  I  receive, 
and  I  received  this  letter  here. 

The  Chairman.  You  received  the  letter  ? 

Mr.  Sullivan.  This  letter  should  be  made  public  here. 

The  Chairman.  That  is  what  I  was  going  to  do,  Sheriff  Sullivan, 
make  it  public.  I  will  read  the  letter,  or  you  can  read  it  if  you  want  to. 
What  is  the  date  of  the  letter? 

Mr.  Sullivan.  February  17, 1949.    Yes,  sir ;  you  read  it. 

Tlie  Chairman.  I  will  read  it.  This,  apparently,  is  a  letter  dated 
February  17, 1949,  sent  to  you  by  the  president  of  the  Crime  Commis- 
sion of  Greater  Miami.     [Reading :] 

Hon.  Jimmy  Suixivan, 
Sheriff,  Dade  County, 

Court  House,  Miami,  Fla. 

Dear  Mk.  Sullivan  :  This  letter  is  written  pursuant  to  direction  of  the  hoard 
of  directors  of  the  crime  commission  and  to  explain  the  purpose  of  certain  visits. 

You  will  recall  that  some  4  months  ago  the  directors  of  the  Crime  Commission 
of  Greater  Miami  invited  you  to  meet  wit)!  them  and  you  were  kind  enough  to 
accept.  At  that  meeting  the  directors  explained  that  the  purpose  of  the  crime 
commission  is  to  seek  better  law  enforcement  and  more  widespread  respect  for 
laws  in  Dade  County. 

To  that  end  we  offered  you  and  your  office  the  full  cooperation,  including  the 
investigative  facilities,  of  the  crime  commission. 

In  .January  1949,  at  the  direction  of  our  board  of  directors,  one  of  our  directors 
called  your  office  on  the  teleplione  for  an  appointment  with  you.  He  was  told 
that  you  were  out  of  your  office  at  that  time,  so  he  left  his  name  and  telephone 
numl)er  witli  the  request  that  you  call  him.  I  understand  that  he  has  not  heard 
from  you.  Against  the  direction  of  the  board  of  directors  a  committee  of  three 
of  the  directors  called  at  your  office  so  they  left  their  names  and  telephone  num- 
bers with  your  Mrs.  Stewart. 

The  Crime  Commission  of  Greater  Miami  has  a  large  membership  and  also 
.some  100  sponsoring  organizations  comprising  a  representative  cross  section  of 
the  citizenship  of  Dade  County.  Enclosed  is  a  pamphlet  showing  the  names  of 
some  of  those  sponsoring   organizations.     The  crime  commission   can  see  no 


ORGANIZED'  CRIME    IN   INTERSTATE    COMMERCE  257 

reason  why  illegal  gambling  including  bookie  activities  in  Dade  County  should 
not  be  stopped  promptly  and  permanently.  Such  activities  are  violations  of 
State  law  and  since  you  are  the  chief  law-enforcement  officer  of  the  county,  we 
look  to  you  for  help. 

We  are  informed  that  in  December  1948  you  gave  to  the  present  chairman  of 
the  State  Kaeing  Commission  a  signed  statement  indicating  that  horse  book- 
making  in  r>ade  (bounty  was  to  cease  inunediately  and  permanently.  It  is  open 
and  public  knowledge  that  these  particular  activities  and  other  illegal  gambling 
activities  are  continuing  and  that  many  of  the  largest  hotels  at  Miami  Beach 
are  permitting  horse-booking  operations  on  their  premises.  Continued  toleration 
of  these  illegal  activities  will  make  further  and  more  detrimental  inroads  on 
our  general  law-enforcement  structure.  It  is  our  duty  to  our  members  and 
sponsoring  organizations  and  to  you,  as  sheriff,  to  call  your  attention  pointedly 
to  these  facts  and  to  let  you  know  that  if  your  office  is  unable  for  any  reason  to 
rectify  them  then  it  is  our  duty  to  inform  our  membership  and  sponsoring 
organizations,  also  to  take  such  measures  as  may  best  be  calculated  to  remedy 
them. 

Again  we  offer  you  our  sincere  cooperation  and  invite  you  to  call  on  us  at 
any  time. 

Yours  very  truly, 


President,  the  Crime  Commission  of  Greater  Miami. 

I  suj)pose  that  was  Col.  Jack  Younger.  Did  you  say  you  got  that 
letter  'i 

Mr.  Sullivan.  I  probably  got  the  letter.    Yes,  sir,  I  would  say,  yes. 

The  Chairman.  You  see  the  return  receipt,  signed  by  you,  do  you 
not? 

Mr.  SuLLR'AN.  I  would  say,  yes.    However 

The  Chairman.  That  is  a  pretty  important  letter.  If  you  got  it 
one  would  think  you  ought  to  remember  it,  because  they  were  oftering 
you  the  facilities  of  their  whole  organization,  and  it  represented  all 
the  people  wanting  to  help. 

Mr.  SuLLWAN.  They  have  been  to  my  office  and  never  offered  any- 
thing like  that.  I  am  in  my  office  just  about  every  morning.  We  had 
one  of  the  gentlemen  come  up  here  yesterday  morning  who  stated  that 
all  the  time  the  grand  jury  was  in  session  I  was  out  of  the  State,  for  6 
months,  which  you  know  that  I  couldn't  be,  as  the  chief  law-enforce- 
ment officer  of  Dade  County,  as  the  sheriff.  The  most  that  I  have 
ever  been  out  of  the  State  on  a  vacation  was  16  days. 

The  Chairman.  Well,  Sheriff,  the  point  is  that  here  they  say : 

To  that  end  we  offered  you  and  your  office  the  full  cooperation,  including  the 
investigative  facilities,  of  the  crime  commission. 

Did  you  take  them  up  on  that  or  did  you  ever  tell  them  that  you 
would  like  for  them  to  help  you?  Did  you  ever  ask  them  for  any  in- 
formation ?    Did  you  or  not  ? 

Mr.  Sullivan.  In  that  particular  letter,  I  don't  know  what  haj)- 
pened.  I  don't  remember  talking  with  them  after  that  letter  was 
written. 

The  Chairman.  Well,  that  has  been  almost  a  year  and  a  half  ago, 

Mr.  Sullivan.  I  understand  that. 

The  Chairman.  And  they  have  apparently  offered  to  help. 

Mr.  Sullivan.  And  I  have  publicly  solicited  their  help  also. 

The  Chairman.  Have  you  asked  them  for  any  assistance? 

Mr.  Sullivan.  I  have  been  to  their  meetings,  I  have  talked  with 
them.    I  have  written  them.    They  say,  "It's  your  job,  it  isn't  our  job." 

The  Chairman.  Have  you  asked  them  to  furnish  you  with  infor- 
mation about 


258  lORG'AXIZED    CKIIME    IN    USTT'ER'STATE    COMMEEC'E 

Mr.  Sullivan.  Let  me  read  a  letter  here. 

The  Chairman.  Have  you  asked  them  to  furnish  you  with  infor- 
mation about  the  Roney  Plaza,  the  Boulevard,  or  any  of  these  places  I 

Mr.  Sullivan.  I  have  asked  them  for  information  pertaining  to 
gambling  in  general. 

The  Chairman.  When  did  you  ask  them  ? 

Mr.  Sullivan.  I  wrote  them  a  letter  on  February  5. 

The  Chairman.  Of  what  year  ? 

Mr.  Sullivan.  1950.    I  would  like  to  read  it. 

The  Chairman.  All  right. 

Mr.  Sullivan.  I  am  going  to  read  the  entirety  of  this  page  here  and 
this  quarter. 

Your  weekly  scandalcast 

The  Chairman.  To  whom  is  the  letter  addressed  ? 
Mr.  Sullivan.  It  is  addressed  to  Mr.  Daniel  Sullivan,  Director, 
Crime  Commission,  Miami,  Fla.     [Reading :] 

Your  weekly  scandalcast  has  come  to  my  attention.  I  had  been  warned  that 
because  of  your  activities  before  the  current  grand  jury  and  the  presence  in 
Miami  Beach  of  the  United  States  Attorney  General,  whom  you  seek  to  impress, 
you  would  make  your  accusations  and  charges  particularly  sensational  on  your 
weekly  broadcast  and  news  write-ups  this  week  end.  You  have  lived  up  to  the 
advance  billing. 

As  the  $15,000  per  year  scandalizer  of  the  so-called  crime  commission,  you 
know  that  you  are  not  honestly  interested  in  suppressing  crime  in  this  county. 
You  know  you  and  your  organization,  composed  of  a  few  anti-Sullivan  people, 
set  out  from  the  very  first  to  "get"  Jimmy  Sullivan.  You  and  others  in  your 
group  who  suffered  two  successive  and  overwhelming  defeats  at  the  election  polls 
in  the  sheriff's  race,  have  combined,  planned,  and  conspired  to  talve  over  my 
office  by  means  fair  or  foul ;  and  as  a  part  of  your  disgraceful  program  you  have 
broadcast  every  week  that  gambling  is  wide  open  and  that  the  county  is  overrun 
with  thugs,  crooks,  gangsters,  racketeers,  hoodlums,  thieves,  triggermen,  mob- 
sters, and  other  friglitening  appellations  of  your  own  invention. 

These  charges  are  pure  fabrications  of  your  own  creation,  and  you  know  it. 

All  the  local  residents  whom  you  have  named  as  having  criminal  records  are 
has-beens  so  far  as  the  law  is  concerned  and,  while  they  may  be  listed  as  neigh- 
borhood undesirables,  since  they  are  not  under  prosecution  or  charge  for  any 
offense,  they  have  the  same  rights  under  the  Constitution  and  laws  that  yoi;  or  I 
have. 

Not  one  single  name  have  you  mentioned  in  all  your  scandalmongering  speeches 
of  an.v  man  in  Dade  County  who  is  wanted  by  the  law  for  any  offense.  Your 
repetitious,  windmill  attacks  against  the  names  and  records  of  past  offenders 
seem  to  make  better  and  more  sensational  music  for  your  deceitful  purposes. 
Neither  do  you  concern  yourself  with  the  more  serious  social  offenses,  such  as 
larceny,  rape,  highway  robbery,  murder,  manslaughter,  juvenile  assaults,  bur- 
glary, and  many  other  high  felonies.  Gambling  is  your  sole  oh.iective.  You  and 
your  organization  are  not  truly  anticrime ;  you  ai'e  anti-Sullivan,  and  from  the 
beginning  you  have  attempted  and  laid  plans  to  do  what  you  failed  to  do  at 
the  election  polls — get  Sullivan  out  of  office. 

If  you  have  evidence  of  gambling  in  this  county,  why  do  you  secrete  It  in  your 
files  and  use  it  only  in  your  attempts  to  "get  Sullivan"?  If  you  will  not  place 
your  evidence  before  nie,  why  have  you  not  laid  it  before  the  county  solicitor, 
the  State  attorney  or  one  of  our  many  warrant-issuing  judges  for  action?  If 
you  seek  to  perform  an  honest  public  service,  why  have  you  not  had  the  courage 
to  use  this  evidence  to  suppress  the  conditions  you  claim  to  exist? 

The  answer  is  obvious.  Your  purpose  is  to  take  over  the  sheriff's  office,  not 
to  suppi-ess  or  eradicate  crime.  Through  the  medium  of  your  scandalous,  crime- 
mongering  broadcasts,  you  seek  to  influence  tbe  grand  jury  to  assist  you  in 
your  hid(l(>n  purpose  to  defeat  aiul  oppress  nie  by  a  back-door  method,  after  you 
lost  the  front-ddoi-  effort  at  tlie  election  polls. 

As  to  the  mattcM's  coviM-ed  in  your  cliarges,  my  office  is  operated  in  strict  accord- 
ance with  a  written  opinion  of  the  attorney  general  of  Florida,  based  upon  the 


lORGAXIZED    CRIME    IN   INTERSTATE    COMMERCE  259 

laws  of  this  State.     The  Slate  attorney  lias  a  copy  of  that  opinion  and  if  you 
are  interested,  can  prepare  a  copy  for  your  use. 

Lastly,  let  nie  say  that,  while  there  may  be  (there  always  has  been)  a  small 
amount  of  "sneak"  gambling  in  a  few  places,  you,  as  the  high-salaried  "get- 
Sullivan"  hatchetman,  well  know  that  on  the  whole,  considering  our  community 
growth  and  tlie  f;0-square-mile  spread  of  over  .lOO.OOO  permanent  residents  and 
hundreds  of  thousands  of  winter  visitors,  the  slieriffs  office  has  done  a  good 
job  in  stippressing  crime  and  keeping  the  county  clean.  In  my  entire  force  of 
.only  95  persons,  after  deducting  clerks,  and  road  patrolmen,  I  have  only  15  men 
to  haudle  the  criminal  assignments,  which  includes  woi-k  in  the  criminal  court 
of  record,  the  court  of  crimes,  and  the  circuit  and  county  judge's  courts. 

Divide  these  15  men  into  working  shifts,  and  you  will  understand,  i>erhaps, 
what  we  are  confronted  with  in  our  efforts  to  serve  the  people  of  this  fast-moving 
county.  Despite  this  shortage  of  manpower,  our  criminal  division's  record  is, 
second  to  none  In  the  South. 

A  copy  of  this  response  has  been  mailed  to  Gov.  Fuller  Warren. 
Very  truly  yours, 

Jimmy  Sttluvan,  Sheriff. 

The  Chairman.  Let  me  see  the  letter  a  moment.  You  complain 
there  that  yon  didn't  have  enonffh  deputies  or  there  was  some  shortage 
of  men,  that  you  had  only  15  men  to  do  something.    Here  it  is : 

I  have  only  15  men  to  handle  the  criminal  assignments,  which  includes  work 
in  the  criminal  court  of  record,  the  court  of  crimes,  and  the  circuit  and  county- 
judge's  courts. 

Yon  really  need  more  men  than  that. 

Mr.  Sullivan.  Senator,  that  is  true.  I  have  my  road  patrolmen 
come  in  and  work  overtime  on  investigation  assignments,  and  I  have 
civil  men  who  work  overtime. 

The  Chairman.  The  point  is,  Sheriff  Sullivan,  that  Judge  Milledge 
here  yesterday  testified  that  he  appointed  some  elisors,  that  is,  citizens 
to  serve  warrants,  and  that  you  brought  a  suit,  I  believe,  to  enjoin 
their  appointment. 

Mr.  Sullivan.  No,  sir,  Senator;  the  appointments  were  already 
made. 

The  Chairman.  Didn't  you  object  to  them  ? 

Mr.  Sltllivan.  No. 

The  Chairman.  You  didn't  object  to  them  ? 

Mv.  Sullivan.  I  had  nothing  to  do  with  an  objection  to  the  war- 
rant, the  service  of  the  papers,  or  anything  else,  but  the  manner  in 
w^hich  it  was  handled ;  some  law-enforcement  body  should  have  handled 
it.  You  shouldn't  go  out  here  and  get  people  off  the  street  to  take  on 
a  raid  of  that  kind,  line  people  up  against  the  wall  and  jerk  a  gun  into 
their  stomachs  and  frighten  them  to  death,  because  some  of  them  would 
nearly  jump  out  of  the  window  in  the  place. 

The  Chair3ian.  That  was  an  honest  effort  on  the  part  of  the  judge 
to  get  some  help  for  you,  wasn't  it  ? 

Mr.  Sullivan.  I  wouldn't  say  so,  no;  because  my  office  was  there 
and  we  have  never  failed  to  serve  one  paper  which  the  judge  has  issued, 
if  possible,  in  Dade  County.  Then  w^e  also  have  justices  of  the  peace 
and  constables.  We  have  law-enforcement  officers  who  are  expei'i- 
enced  in  making  those  arrests,  and  if  one  of  those  papers  should  be 
directed  to  me  and  I  should  fail  in  my  duty  to  properly  carry  out 
that  order  I  would  be  removed  from  office.  All  the  (lovernor  would 
have  to  do  to  remove  me  from  office  would  be  to  say,  "I  suspend  you 
from  office  temporarily,  until  the  legislature  meets  again." 


260  ORGANIZED   ORflME    EST   INTERSTATE    OOMMERC'E 

The  Chairman.  I  notice  your  letter  says  here : 

And  as  a  part  of  your  disgraceful  program,  you  have  broadcast  every  week 
that  gambling  is  wide  open  and  that  the  county  is  overrun  with  thugs,  crooks, 
gangsters,  raclieteers,  hoodlums,  thieves,  triggermen,  mobsters,  and  other 
frightened  appelations  of  your  own  invention. 

These  charges  are  pure  fabrications  of  your  own  creation,  and  you  know  it. 

Well,  I  was  just  looking  at  this  chart  [indicating  exhibit  No.  108, 
a  chart  submitted  by  Mr.  Daniel  Sullivan].  Isn't  it  true  that  these 
people  have  been  running  around  here  ? 

Mr.  Sullivan.  Yes. 

The  Chairman.  You  would  not  want  to  call  them  the  creation  of 
somebody's  imagination  if  they  are  around  here  ? 

Mr.  Sullivan.  Yes,  Senator.  That  is  just  what  I  have  been  speak- 
ing of  just  now  though.  When  a  group  of  people  spend  days,  many 
days,  getting  that  information  and  if  an  arrest  can  be  made  and  those 
people  can  be  taken  care  of  before  a  court  of  justice  why  have  not 
those  papers  been  presented  where  they  can  be  taken  care  of  ? 

The  Chairman.  Well,  Mr.  Sullivan,  you  can't  correctly  say  though 
that  these  people  haven't  been  here,  that  it  hasn't  been  public  knowledge 
that  they  have  been  here.  I  have  seen  Miami  papers  during  the  past 
6  or  8  months  with  their  pictures  in  them  showing  that  they  were  regis- 
tered in  hotels  here.  You  can't  say  that  is  just  pure  fabrication  or 
the  creation  of  somebody's  imagination,  can  you?  I  mean,  that  is 
liardly  correct.  If  these  people  are  hanging  around  here  every  year, 
why,  that  is  not  pure  fabrication  of  "your  own  creation,"  is  it? 

Mr.  Sullivan.  Senator,  we  have  several  hundred  thousand  people 
who  come  down  here  in  the  wintertime  and  it  is  impossible — we  in 
every  way  invite  as  many  people  as  we  can  to  come  to  Dade  County 
in  the  wintertime  and  the  year  round,  particularly  when  the  horse 
races  are  going — we  have  three  horse  races  going  here  in  this  area 
and  one  of  them  in  Broward  County.  We  get  as  many  people  down 
here  as  we  can. 

The  Chairman.  I  know  that  Sheriff  Sullivan,  but  you  don't  want 
these  people  [indicating  chart]  down  here,  do  you? 

Mr.  Sullivan.  We  don't  want  these  people  down  here. 

The  Chairman.  It  has  been  quite  common  knowledge  to  anyone 
who  knows  anything  at  all  that  these  people  have  been  here  every 
season. 

Mr.  Sullivan.  Suppose  we  do  this.  Senator.  Suppose  if  we  have 
something  that  we  can  do  about  them  we  go  to  the  law-enforcement 
officers  and  say,  "Let's  arrest  these  fellows.  We  have  investigated  and 
find  we  can  arrest  them  on  this  type  of  charge"  instead  of  goin^  down 
to  our  newspapers  and  saying,  "This  is  what  you  see  in  Dade  County. 
Be  careful  in  walking  down  the  street  because  somebody  will  strike 
a  knife  in  you"  ?    Wouldn't  that  be  better  ? 

We  got  many  thousands  of  property  owners,  and  some  of  them  are 
big  property  owners  who  pay  big  taxes  to  operate  our  county.  We 
have  the  fastest-growing  area  perhaps  in  the  United  States. 

The  Chairman.  Let  us  get  back  to  tliis  other  point.  With  all  these 
people  here  you  say,  "Wouldn't  it  be  better  to  let  you  know  they  are 
here  rather  than  putting  it  in  the  newspapers."  I  asume  it  has  been 
goincr  on  for  a  long  time  and  it  is  common  knowledge  that  tliese 
people  are  here  and  that  many  of  them  have  been  operating  various 


lORGAJSnZED    CHIME    IN   mTEUSTATE    OOMMEROE  261 

things,  illegal  operations.  What  good  would  that  information  do 
if  it  was  turned  over  to  you  ?  I  suppose  as  a  last  resort,  feeling  noth- 
ing else  had  happened,  they  put  it  in  the  newspapers. 

Mr.  Sullivan.  Well,  if  the  newspapers  are  for  you  it  is  one  pic- 
ture and  if  they  are  against  you  it  is  another  picture.  You  know 
that.  Senator.  You  are  well  aware  of  that  fact.  If  you  run  for  office 
you  find  that  out  and  I  happen  to  know. 

The  Chairman.  So  you  don't  think  the  newspapers  are  in  favor 
of  law  enforcement,  in  getting  these  criminals  and  arresting  them  and 
bringing  them  to  justice  and  getting  them  out  of  town?  You  don't 
think  they  are  in  favor  of  it? 

Mr.  Sullivan.  They  are. 

The  Chairman.  Why  do  you  condemn  their  efforts  in  that  respect 
then  ? 

Mr.  Sullivan.  I  am  in  favor  of  it  just  as  much  as  they  are.  I  work 
just  as  hard  as  they  work  and  I  have  my  entire  force  working  hard. 

The  Chairman.  But  nothing  has  happened ;  isn't  that  the  point  ? 

Mr.  Sullivan.  Well,  you  just  saw  272  or  279  of  them  were  sent 
to  our  prison  here  last  year. 

The  Chairman.  I  didn't  see  any  of  those  names  on  there  [indi- 
cating charts]. 

Go  ahead  with  your  statement,  Mr.  Sullivan.  I  didn't  mean  to 
get  into  an  argument  with  you. 

Mr.  Sullivan.  Senator,  in  regard  to  what  you  spoke  of  a  minute 
ago  as  to  the  elisor  raids 

The  Chairman.  Yes. 

Mr.  Sullivan.  This  case  was  brought  by  Jimmy  Sullivan,  as  sheriff 
of  Dade  County,  Fla.,  against  Stanley  Milledge,  as  one  of  the  judges 
of  our  Circuit  Court  of  Dade  County 

The  Chairman.  Then  you  did  bring  a  suit? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  I  thought  your  counsel  said  no  suit  was  brought? 

Mr.  Hunt.  Counsel  never  said  that  because  counsel  brought  the  suit. 

The  Chairman.  I  see. 

Mr.  Sullivan.  The  suit  was  brought  to  show  cause,  to  show  the 
cause  why  my  office  was  not  called  on  to  serve  these  processes.  It  is 
my  duty  to  do  that  and  if  I  fail  one  time  let  them  put  me  out  of  office 
legally  through  our  State  channels  which  they  can  do,  but  I  don't 
believe  that— I  don't  know  just  what  happened  in  that  case.  One  of 
the  fellows  who  was  working  there  when  this  took  place  was  also  one 
of  the  elisors  who  was  appointed  elisor. 

The  Chairman.  Anyway,  an  elisor  was  appointed  by  Judge 
Milledge? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  Judge  Milledge  has  a  very  good  record  of  trying  to 
enforce  the  law. 

Mr.  Sullivan.  Yes,  sir.     He  is  a  very  fine  fellow. 

The  Chairman.  If  there  wasn't  any  question  that  he  had  to  appoint 
an  elisor,  how  about  the  sheriff's  office? 

Mr.  Sullivan.  No. 

The  Chairman.  Did  he  appoint  an  elisor  or  not? 

Mr.  Sullivan.  Senator,  he  appointed  an  elisor  but  not  to  help  out 
the  sheriff's  office.     We  were  there  to  serve  the  papers. 


262  iORG.^XIZED    GRUME    EST   ESTTER'STATE    OOMME'RCE 

The  Chairman.  Will  you  explain  that  any  way  yon  want? 

Mr.  Hunt.  Let  me  present,  Senator,  a  copy  of  the  bill  for  declara- 
tory decree  which  will  present  the  legal  issnes  as  they  were  plead  in 
conrt  [handing  document  to  the  chairman]. 

The  Chairman.  May  we  have  this  for  the  record  ? 

Mr.  Hunt.  Yes,  sir.    I  am  giving  it  to  yon  for  the  record. 

The  Chairman.  I  see  this  is  a  long  order,  Mr.  Hunt.  Why  don't 
you  explain  what  the  orders  says  to  save  time  ?  "W'liat  was  the  result 
of  the  order? 

Mr.  Hunt.  The  order,  signed  by  four  of  the  circuit  conrt  judges, 
Judge  Milledge  excepted,  holds  two  things,  that — 

All  process,  except  that  issuing  from  a  justice  of  the  peace  court,  shall  he 
served  by  the  sheriff  or  any  constable  of  the  county  in  the  district  in  which  it  is 
to  be  served.  Process  of  a  justice  of  the  peace  court  may  be  served  by  a  sheriff 
of  the  county  or  by  a  constable.  A  justice  of  the  peace  or  a  constable  in  the  re- 
spective counties,  may  serve  all  process  in  cases  where  the  sheriff  is  interested, 
and  in  case  of  necessity  the  judge  of  the  circuit  court  may  appoint  an  elisor  to 
act  instead  of  the  sheriff. 

And  it  was  held  in  this  opinion  by  these  four  judges  that  it  was 
improper  to  go  over  the  head,  that  it  was  improper  for  a  circuit  court 
judge  to  go  over  the  heads  not  only  of  the  sheriff  but  the  constitu- 
tionally elected  and  appointed  justices  of  the  peace  and  constables  pro- 
vided under  this  law  and  to  appoint  a  private  individual  to  strap  a  gun 
on  him  and  go  raiding. 

That  is  the  purport  of  it.  It  did  dismiss  the  bill  upon  tlie  ground 
that  such  an  action  could  not  be  maintained  under  the  Florida  dec- 
laratory decree  statute. 

The  Chairman.  Well,  the  bill  that  w^as  dismissed 

Mr.  Hunt.  AVas  the  one  I  presented. 

The  Chairman.  Was  Sheriff  Sullivan's  bill  ? 

Mr.  Hunt.  That  is  right. 

The  Chairman.  So,  there  wasn't  any  decision  here  as  to  whether 

Mr.  Hunt.  You  have  three  pages  of  such  decision  as  I  have  just 
quoted. 

The  Chairman.  Well,  this  just  states  the  law  and  then  just  says  that 
Sheriff  Sullivan's  bill  for  some  jurisdictional  reason  has  to  be  dis- 
missed. 

Mr.  Hunt.  That  latter  part  is  correct. 

The  Chairman.  We  will  mark  this  as  an  exhibit.  (Bill  for  De- 
claratory Decree,  and  opinion  and  order,  referred  to  above,  was 
marked  "Exhibit  No.  lo6,"  and  appears  in  tlie  appendix  on  pp.  770- 
777.)     Anything  else.  Sheriff? 

Mr.  Sullivan.  Senator,  we  have  here  some  of  the  things  of  which 
you  lieard  yesterday.  These  are  the  records  of  some  of  the  people, 
their  past  records,  who  live  on  Miami  Beach  or  in  different  parts  of 
Dade  County  [indicating  file]. 

The  Chairman.  You  are  talking  about  some  of  the  S.  &  G.  people? 

Mr.  Sullivan.  Well,  I  am  talking  about  the  people  we  have 
records  of.    It  could  be.    I  don't  know.    It  is  possible. 

I  am  speaking  now  of  this  Charles  Fischetti  who  lives  on  Allison 
Road,  INIiami  Beach,  and  whose  plione  is  not  published  and  is  in  his 
wife's  name.  His  wife  is  a  registered  voter.  The  taxes  are  ])aid 
by  Ami  Fischetti.  The  gas  is  paid  by  Ann  Fischetti.  The  water 
is  paid  by  Ann  Fischetti  and  the  lights  are  paid  by  Ann  Fischetti. 


ORGANIZED    CRIME    IN    INTERSTATE    OOlVIMERCiE  263 

The  gas  was  paid  since  January  9,  1939,  and  tlie  lights  were  paid 
since  October  10.  1939. 

Mr.  Hunt.  Go  to  the  next  one. 

Mr.  SuLLivAX.  The  next  one  is  Joe  Massei,  who  lives  at  1062 
Northwest  Twenty-second  Street,  who  receives  his  mail  there,  rather, 
in  care  of  the  INIiami  Provision  Co.,  phone,  2-8113,  and  his  residence 
is  the  Grand  Hotel,  2220  Twenty-third  Street,  Miami  Beach,  ])hone, 
56813;  no  voter's  registration;  taxes  on  1062  Northwest  Twenty- 
second  Street  paid  by  Miami  Feed  &  Supply  Co.,  located  at  1038 
Northwest  Twenty-first  Terrace.  Lights  in  the  name  of  Joseph 
Miller,  wholesale  meat  business;  taxes  on  220  Twenty-third  Street, 
Miami  Beach,  paid  by  Polkin,  Inc;  lights  on  220  Twenty -third 
Street,  Miami  Beacli,  paid  by  John  G.  Lux  since  September  30,  1919. 

Here  is  Sam  Taran  who  has  been  in  local  skirmishes  here  from 
time  to  time.  He  lives  at  6520  Allison  Road,  Miami  Beach.  The 
])hone  is  86-1903  and  86-6986.  His  wife  is  Diane  and  brother  is 
F.  H.  Taran;  Taran  Distributors,  Inc.,  2820  Northwest  Seventh 
Avenue;  Sam  Taran,  president;  Taran  Television,  phone  3-7618. 
Registered  voter.  Taxes  paid  by  S.  H.  Taran;  gas  paid  by  S.  H. 
Taran  since  December  3,  1915 ;  water  paid  by  S.  H.  Taran  since 
December  3,  1915  and  lights  paid  by  S.  H.  Taran  since  December 
3,  1945. 

The  Chairman.  How  many  do  you  have  there  ? 

Mr.  Sullivan.  Senator,  the  point 

The  Chairman.  The  point  is  you  prove  that  they  are  property 
owners  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  Will  you  file  these  as  an  exhibit  to  your  testi- 
mony^ The  committee  will  be  glad  to  have  the  information. 
(Photographs  and  criminal  records  submitted  by  Sheriff  Sullivan 
were  nuirked  ''Exhibit  No.  137,"  on  file  with  committee.) 

Are  those  the  identifications  of  them? 

Mr.  Sullivan.  Yes,  sir.  And  also  some  more  pictures  of  some 
[handing  photographs  to  the  chairman]. 

The  Chairman.  I  see  you  have  a  picture  of  Mickey  Cohen  and  his 
body  guards. 

Mr.  Sullivan.  You  will  be  interested  in  this  I  am  sure.  We  have 
these  and  records  for  these  people  here  [handing  documents  to  the 
chairman]. 

The  Chairman.  The  first  picture  you  hand  me  is  the  home  of 
John  Angersola. 

(Exhibit  No.  138,  see  appendix,  p.  777.) 

Mr.  Sullivan.  Yes,  sir.  And,  here  is  another  picture  of  John 
Angersola  [handing  photograph  to  the  chairman]. 

(Exhibit  No.  137  on  file  with  committee.) 

Mr.  Sullivan.  Here  is  a  picture  of  Sam  Taran's  home  [handing 
photograph  to  the  chairman]. 

The  Chairman.  It  will  l>e  made  an  exhibit  to  your  testimony. 

(Exhibit  No.  139,  see  appendix,  p.  778.) 

Mr.  Sullivan.  Here  is  a  picture  of  Sam  Taran's  place  of  business. 

(Exhibit  No.  137  on  file  with  committee.) 

The  Chairman.  What  kind  of  disiributing  company  is  that  ? 

Mr.  Sullivan.  It  is  listed  on  the  back  there.  It  is  a  meat-distribut- 
ing business,  I  believe. 

68958— 50— pt.  1 18 


264  ORGANIZED    ORfEyTE    IN   INTERSTATE    OO'MME'R'C'E 

Here  is  Ralph  Buglio,  261  North  Coconut  Lane,  Pahn  Island  [hand- 
ing photograph  to  chairman]. 

The  Chairman.  It  will  be  made  part  of  the  record. 

(Exhibit  No.  140,  see  appendix,  p.  778.) 

Mr.  Sullivan.  Here  is  one  of  Joe  Massei  of  the  Grand  Hotel  [hand- 
ing photograph  to  the  chairman]. 

The  Chairman.  Is  that  the  Grand  Hotel  on  Twenty-third  Street, 
Miami  Beach? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  He  doesn't  own  the  Grand  Hotel,  does  he  ?  He  just 
occupies  it  just  with  somebody  else? 

Mr.  Sullivan.  Well,  he  is  thi!re.  They  claim  that  he  is  one  of  the 
owners. 

Joe  Massei  at  1062  Northwest  Twenty-second  Street.  There  is  his 
provision  place  there  [handing  photograph  to  the  chairman]. 

The  Chairman.  It  will  be  made  a  part  of  the  record  (exhibit  No. 
137). 

Mr.  Sullivan.  There  is  Martin  Leo  Accardo. 

(Home  of  Martin  Leo  Accardo,  exhibit  No.  141,  see  appendix,  p.  779.) 

Mr.  Sullivan.  There  is  Charles  Fischetti  over  there  [indicating 
and  handing  photographs  to  the  chairman]. 

(Home  of  Charles  Fischetti,  exhibit  No.  142,  see  appendix,  p.  779.) 

The  Chairman.  Some  of  them  have  mighty  big  residences,  don't 
they  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  This  is  Charles  Fischetti  ?  You  have  been  talking 
about  him.    He  is  the  Charles  Fischetti  from  Chicago  ? 

Mr.  Sullivan.  Yes,  sir.  Here  is  Tony  Accardo  [handing  photo- 
graph to  the  chairman] . 

(Home  of  Tony  Accardo,  exhibit  No.  143,  see  appendix,  p.  780.) 

The  Chairman.  How  come  you  have  these  pictures  ?  Wliat  did  you 
take  these  pictures  for? 

Mr,  Sullivan.  Well,  I  was  trying  to  find  out  what  I  would  be  able 
to  do  with  them. 

The  Chairman.  So,  that  when  the  committee  came  you  thought 
it  would  be  a  good  idea  to  show  them. 

Mr.  Hunt.  I  don't  think  that  is 

Tlie  Chairman.  I  didn't  mean  to  make  any  disparaging  remarks. 

Mr.  Sullivan.  I  was  trying  to  find  out  what  I  could  do  with  the  un- 
desirable people  that  are  here  with  their  pictures  and  records  that  we 
have  of  them.  HoweA^er,  so  far  we  only  have  photographs  of  these 
fellows  and  can't  arrest  them  because  we  don't  have  anything  that  we 
can  arrest  them  for. 

It  has  been  suggested  by  some  people  that  I  go  out  and  pick  them 
up  and  put  them  in  jail.  I  am  under  a  $25,000  bond.  If  I  go  out  and 
start  putting  people  in  jail  for  no  reason  wliatsoever  I  am  on  my  bond. 
I  have  got  to  find  some  charge  or  another  to  arrest  these  people  for. 
I  got  to  have  some  charge  that  will  stick.  If  I  were  able  to  employ  a 
lot  of  outside  men  well  then  I  might  be  able  to  find  out  some  more  stuff 
that  is  not  actual  crimes. 

The  Chairman,  Are  these  slips  with  the  descriptions  you  have  been 
reading  from  for  the  use  of  the  committee  ? 

Mr,  Sullivan,  Yes,  sir. 

The  Chairman,  Can  you  give  us  those  descriptions  ? 


ORGANIZED    CRIME    IN    INT'EKSTATE    OOMMERCE  265 

Mr.  Sullivan.  Yes,  sir  [handing  documents  to  the  chairman]. 

Tlie  Chaikman.  Let  them  be  filed  as  exhibits  to  Sheriff  Sullivan's 
testimony. 

(Exhibit  No.  137,  on  file  with  committee.) 

The  Chairman.  You  had  here  a  picture  of  Mickey  Cohen  and  three 
body  guards.    What  did  you  do  with  that?    Is  that  just  a  record? 

Mr.  Sullivan.  This  is  a  file  that  we  have  here  [indicating]  from 
which  we  try  to  find  out  if  we  have  a  record  on  these  men  or  that  we 
can  place  somthing  against  them;  we  don't  want  them  here  at  all,  a 
bit  more  than  somebody  else  wants  them  in  this  State  or  in  their  State 
if  they  are  trying  to  commit  a  crime.  In  fact,  we  don't  want  them  here 
period.  But  how  are  we  going  to  get  them  out  if  they  have  not  com- 
mitted a  crime  or  are  wanted  for  some  other  charge  ? 

We  have  pictures  of  all  these  criminals  here  and  we  have  FBI 
records  on  them. 

The  Chairman.  Let  me  have  that  Mickey  Cohen  picture. 

Mr.  Sullivan.  Yes,  sir  [handing  photograph  to  the  chairman]. 
These  pictures  go  with  the  records  there  [indicating]. 

The  Chairman.  All   right,   we  will   attach  them  to  the  record. 

(Photograph  referred  to  is  included  in  exhibit  No.  137,  on  file  with 
the  committee. ) 

Mr.  Sullivan.  Now,  here  is  a  record  of  a  local  fellow  who  is  an 
undesirable  man  who  has  been  arrested  here  many  times  and  taken  into 
court.  Every  time  you  take  him  he  gets  out.  He  has  been  arrested  in 
other  places  many  times. 

Mr.  Hunt.  What  is  his  name  ? 

Mr.  Sullivan.  His  name  is  John  Nahas  and  he  has  been  arrested 
for  armed  robbery,  conspiracy  to  violate  the  Prohibition  Act,  arrested 
by  State  troopers  and  admitted  to  the  Federal  penitentiary,  arrested 
for  vagrancy,  assault  and  battery;  investigation  receiving  stolen  prop- 
erty, investigation  operation  of  bawdy  house;  investigation  of  pro- 
curer of  bawdy  house  and  prostitution ;  operating  house  of  prostitu- 
tion ;  operating  house  of  ill  fame. 

Quite  a  number  of  these  are  not  in  Miami.  They  are  in  Michigan. 
They  are  in  Indiana.  They  are  in  Kansas.  They  are  in  Illinois  and 
there  are  several  other  States  that  they  are  in. 

Mr.  Hunt.  You  want  to  put  that  in  ? 

The  Chairman.  Yes ;  put;  that  in  the  record. 

(Exhibit  No.  137,  on  file  with  committee.) 

The  Chairman.  Sheriff  Sullivan,  we  are  going  to  have  a  very  short 
recess  at  this  time.  We  hoped  that  Mr.  Harry  Russell  would  be  here. 
That  matter,  therefore,  will  be  deferred. 

The  committee  will  take  a  5-minute  recess. 

(A  short  recess  was  taken.) 

The  Chairman.  All  right.  Sheriff,  do  you  have  any  other  records? 

Mr.  Sullivan.  Yes ;  I  do  have.  I  have  the  balance  of  these  records 
of  which  we  were  speaking  of  at  the  present  time. 

Anyway,  at  the  time  we  get  the  finger  prints  or  pictures  of  these 
people  we  get  their  records  and  if  we  can  make  an  arrest  we  make  the 
arrest.  We  have  these  pictures  where  we  can  help  other  law-enforce- 
ment agencies  and  the  Federal  Bureau  in  Washington  which  we  have 
and  they  don't  have. 


266  lORG'ANIZED    ORIIME    IX   IIS-^T  ERST  ATE    OOMMERCE 

The  Chairman.  A  lot  of  the  complaints,  as  a  matter  of  fact,  that 
have  seen  sent  here  came  from  other  county  law-enforcement  officers 
or  States  and  what  not,  didn't  they  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  That  information  was  furnished  to  you  by  them. 

]Mr.  Sullivan.  That  is  true. 

The  Chairman.  You  put  anything  you  have  there  in  the  record, 
Sheriff  Sullivan. 

Mr.  Sullivan.  We  have  a  record  of  a  man  which  came  up  here 
yesterday  for  quite  a  discussion  while  this  matter  was  being  pre- 
sented, this  Sam  Millman.  His  address,  his  local  address  is  2609 
Collins  Avenue,  Miami  Beach,  and  his  place  of  arrest  was  at  Northwest 
Thirty-sixth  Street  and  Thirteenth  Avenue,  one  block  east  of  the  Club 
36.  He  was  arrested  by  one  of  our  men,  George  Patton  at  3 :  35  a.  m. 
on  May  5,  1950.  The  above  subject  was  arrested  along  with  Moe 
Rockfeld  on  suspicion  of  jewel  robbery.  He  was  held  for  investiga- 
tion and  later  put  into  a  lineup  for  identification.  People  failed  to 
identify  the  subject.  Further  investigation  revealed  that  subject  had 
a  record.  The  subject  was  charged  with  "Failure  to  register  criminal 
record.''  He  was  tried  in  the  court  of  crimes  on  June  2, 1950,  and  was 
found  not  guilty.  FBI  record  attached.  "This  Millman,  a  partner 
of  Moe  Rockfeld,'-  that  is  the  notation  on  here  and  his  FBI  record  is 
put  in  and  the  last  few  times  that  he  was  arrested.  His  last  time  out 
of  the  State  was  December  30,  1943,  in  Jackson,  Mich.  He  was 
charged  with  conspiracy  to  obstruct  and  impede  justice  and  on  June 
28,  1945,  he  was  paroled  to  Detroit,  Mich.,  to  serve  balance  of  term 
and  on  January  10, 1918.  he  was  discharged  from  parole. 

We  arrested  him  twice  here,  once  at  Miami  Beach  on  March  2,  1950, 
for  criminal  registration  with  the  sheriff's  office,  Miami,  Fhi..  and  we 
arrested  him  which  I  quoted  on  May  5, 1950,  for  investigation  for  which 
he  was  recently  released. 

That  is  the  only  thing  that  we  do  when  we  do  have  no  charge  against 
them  if  the  people  who  come  to  see  them  and  identify  can't  say  he  has 
committed  a  crime.  If  we  can  find  out  or  if  people  will  help  us 
instead  of  saying,  "You  go  out  and  get  it,"  that  would  help. 

The  Chairman.  There  is  a  statute  requiring  registration  by  any 
people,  or,  requiring  the  registration  of  any  people  with  a  criminal 
record. 

Mr.  Sullivan.  Felonies. 

The  Chairman.  Felony  records  ? 

Mv.  Sullivan.  Felony  records ;  yes,  sir. 

The  Chairman.  You  just  couldn't  prove  that  he  was  the  one  that 
committed  that  offense  in  Michigan  ? 

Mr,  Sullivan.  He  was  registered  previously  with  our  office  and 
also  on  Miami  Beach  for  a  felony  record. 

And  the  case  of  Moe  Rockfeld : 

The  following  subject  is  described  by  the  local  newspapers  and  by  the  crime 
commission  as  a  notorious  Detroit  and  Chicago  hoodlum.  Moe  Rockfeld,  alias 
Morris  Rockfeld;  male  white;  age  44;  address,  local,  2(500  Collins  Avenue,  Miami 
Beach,  Fla.  IMace  of  arrest.  Northwest  Thirty-sixth  Street  and  Thirteenth  Ave- 
nue, about  one  block  east  of  Club  36.  Arrested  by  George  Patton.  Time,  3:  35 
a.  m.  on  May  5,  1050. 

The  above  subject  was  arrested  along  with  Sam  Millman  on  suspicion  of  jewel 
robbery  and  booked  into  tiie  county  jail.  Subject  was  later  put  into  a  line-up  and 
victims  failed  to  identify  him. 


lORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  267 

The  subject  was  later  charged  with  vagrancy  and  tried  in  court  of  crimes  in 
absentia  and  found  not  guilty. 

He  was  tried  in  the  court  of  crimes  by  his  attorney.  He  was  not 
there  and  his  attorney  pleaded  for  him  in  absentia,  and  he  was  found 
not  guihy.    That  was  on  June  7,  1950. 

Now  we  have.  Senator,  these  people  who  come  here  and  they  are 
not  wasted,  see?  If  any  officer  would  arrest  them  or  if  any  law- 
enforcement  office  can  arrest  them  we  \vould  be  happy  because  we  con- 
sider it  all  right.  Any  time  we  get  hold  of  a  notorious  character  we 
lock  him  up.  I  know  any  one  of  my  men  would  be  very  happy  to  do 
that.  They  think  they  have  done  something.  They  think  it  is  a  feather 
in  their  cap,  and  I  always  try  to  impress  the  importance  of  that.  I  try 
to  do  something  for  them  to  encourage  it  more. 

That  is  one  of  the  main  things  that  our  papers  should  do  in  a  case 
of  that  kind. 

The  Chairman.  Mr.  Sullivan 

Mrr  Sullivan.  Any  time  our  men  go  out  and  perform  some  out- 
standing duty  for  the  good  of  the  community  the}^  should  be  praised 
for  it  greatly.  They  are  just  human  beings,  just  like  other  people, 
and  you  can  do  a  lot  more  with  them  if  you  try  to  help  them  insteacl 
of  knocking  them  down  every  time  a  chance  comes  along  to  do  that. 

Here  is  a  picture  of  Joseph  Adonis,  alias  Doto,  and  his  FBI  record, 
which  I  am  going  to  turn  over  here.  The  last  time  Joseph  Adonis  was 
arrested  was  May  9,  19-iO,  by  the  police  department  in  New  York.  It 
doesn't  say  "Released"  here.  It  says,  "No  longer  wanted  as  Joe 
Adonis.     Subject  arrested  an.d  released."     "No  longer  wanted,"  see? 

Now,  this  is  one  of  the  fello-ws  here  that  we  received  a  tremendous 
amount  of  very,  very  bad  publicity  on  from  time  to  time.  He  is  from 
time  to  time  in  our  area,  and  I  tell  you  that  that  stuff  in  our  news- 
l^ajiers  doesn't  do  our  town  no  good. 

The  Chairman.  Is  he  registered  with  you,  Joe  Adonis? 

Mr.  Sullivan.  Only  in  that  manner.  Senator. 

The  Chairman.  I  mean,  did  he  file  his  felony  registration  here  in 
this  county  ? 

Mr.  Sullivan.  Joe  Adonis  has  not  filed  in  our  county,  I  mean,  in 
our  sheriff's  office.  We  have  records  of  these  following  men  and  Joe 
Adonis. 

Frankly,  Senator,  I  can't  tell  you  whether  he  has  filed  with  us  for 
his  criminal  record.  I  would  say  that  he  has.  I  don't  know  if  it  is 
with  the  city  of  Miami  or  the  city  of  JNIiami  Beach. 

This  office  has  records  of  criminals,  criminal  records  of  the  following 
men: 

Ralph  Buglio,  Joe  Massei,  alias  Joe  Massey,  Sam  Taran,  Frank 
Erickson,  Joe  Adonis,  Frank  Costello,  Anthony  Carfano,  Charles  Fis- 
chetti,  Moe  Rockfeld,  alias  Morris  Rockfeld,  Samuel  Millman,  Jimmie 
Sakelaris  (Taran's  partner),  Isadore  Blumenfield,  alias  Kid  Cann, 
Nick  Kokenos 

The  Chairman.  You  mean,  these  people  have  filed  their  felony 
registrations  with  you? 

Mr.  Sullivan.  We  have  records  of  these. 

The  Chairman.  Everybody  has  records.  Do  you  have  felony  regis- 
tration certificates  on  these? 

Mr.  Sullivan.  Of  these. 


268  lORGAJSnZE'D    CEIIME    IN   INTERSTATE   COMMERCE 

The  Chairman.  You  do  have  ? 

Mr.  Sullivan.  I  am  sure  we  have  the  ones  of  these  [indicating], 
but  we  don't  have  the  ones  for  these  [indicating]. 

This  office  has  criminal  records  of  the  following-named  men 
[indicating]. 

The  Chairman.  What  do  you  mean  by  that?  You  have  their 
pictures 

Mr.  Sullivan.  FBI  record. 

The  Chairman.  And  their  slip  ? 

Mr.  Sullivan.  Yes,  sir. 

The  Chairman.  But  I  was  asking  about  the  record  they  are  re- 
quired to  file  when  they  register  when  they  come  in. 

Mr.  Sullivan.  That  definitely  I  can't  tell  you.  It  will  be  in  my 
office  if  we  have  it. 

The  Chairman.  That  is  very  important,  isn't  it? 

Mr.  Sullivan.  We  have  a  number  of  them.  Here  is  one  that  was 
booked  at  11  a.  m.  on  February  28,  1947,  in  the  sheriff's  office,  Paul 
Pancsko.  He  was  released  on  a  writ  of  habeas  corpus  on  March  2, 
1947,  by  order  of  one  of  our  circuit  court  judges.  This  is  the  gentle- 
man [handing  photograph  to  the  chairman]. 

The  Chairman.  I  have  seen  his  picture  before.  Let's  get  these 
into  the  record  as  quickly  as  we  can.  Sheriff. 

(Photographs  and  records  referred  to  above  are  included  in  exhibit 
No.  137,  on  file  with  committee.) 

Mr.  Sullivan.  Yes,  sir.  We  have  about  285,000  classifications  in  our 
office  upstairs  on  the  nineteenth  floor. 

Here  is  Paul  Labriola  that  was  mentioned  here.  He  was  booked  in 
the  sheriff's  office  on  February  28,  1947,  and  was  released  on  a  writ  of 
habeas  corpus  by  one  of  our  circuit  court  judges  [handing  photogi'aph 
to  the  chairman] . 

The  Chairman.  All  right,  it  will  be  filed.     (Exhibit  No.  137.) 

Mr.  Sullivan.  I  got  two  of  those  there.  I  got  three  right  together 
[handing  photographs  to  the  chairman]. 

The  Chairman.  They  will  be  filed.     (Exhibit  No.  137.) 

Mr.  Sullivan.  This  one,  John  Kay,  was  booked  by  our  office  and 
released  on  a  writ  of  habeas  corpus  on  February  28,  1947.  Nick 
Kokenes  was  booked  on  February  28. 1947,  and  was  released  on  March 
2, 1947,  on  a  writ  of  habeas  corpus  [handing  photographs  to  the  chair- 
man]. 

The  Chairman.  That  will  be  filed  in  the  record.     ( Exhibit  No.  137. ) 

Mr.  Sullivan.  Senator,  I  think  it  is  very  important  to  bring  these 
things  to  your  attention,  the  work  that  our  office  does  in  the  county 
and  also  in  trying  to  relieve  the  community  of  undesirable  elements. 
Here  is  a  letter  from  the  Sevier  County  circuit  court : 

In  I'eply  to  the  telegram  received  this  day  from  Western  Union  in  regard  to 
George  Laris  stating  his  case  number  in  circuit  court  356. 

I  have  checked  my  records  and  I  find  that  case  No.  356  in  the  circuit  court 
of  Sevier  County,  Tenn.,  was  styled:  State  of  Tennessee  v.  Jimmie  Sakelaris, 
alias,  who  was  indicted  in  the  circuit  court  of  Sevier  County,  Tenn.,  Mai'ch  2,  1937, 
for  arson,  and  he  was  tried  and  convicted  in  the  circuit  court  of  Sevier  County, 
Tenn.,  on  July  12  and  13,  1937,  a  motion  for  new  trial  was  made  by  the  defendant 
whicli  motion  was  heard  by  tlie  court  on  July  14,  1947,  and  the  court  overruled 
said  motion  for  new  trial ;  the  defendant  appealed  his  case  to  the  Supreme 
Court  of  Tennessee,  sitting  at  Knoxville,  Tenn.,  which  appeal  was  perfected  by 
the  defendant  and  his  counsel  and  pending  the  appeal  the  defendant,  as  I  under- 
stand the  record,  got  a  pardon  from  the  Governor  of  the  State  of  Tennessee. 


ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE  269 

So  far  as  the  records  In  my  office  are  concerned  in  regard  to  case  No.  356,  the 
defendant,  Jimmie  Sakelaris,  alias,  was  convicted  for  arson  in  the  circuit  court 
of  Sevier  County,  Tenn.,  and  appealed  to  the  supreme  court  sitting  at  Knoxville, 
Tenn.,  which  appeal  was  perfected  so  far  as  my  records  are  c<mcerned. 

If  you  desire  a  certified  copy  of  the  proceedings  as  they  appear  on  record  in 
my  office  in  Sevier  County,  Tenn.,  I  will  be  glad  to  furnish  same  but  I  believe 
that  you  would  get  a  more  complete  record  by  getting  in  touch  with  the  clerk 
of  the  supreme  court  at  Knoxville,  Tenn.,  as  to  the  complete  i-ecord  and  also  as  to 
the  pardon  granted  by  the  Governor  of  the  State  of  Tennessee. 
Yours  truly, 

H.  T.  Ogle, 
Circuit  Court  Clerk. 

The  Chairmai^.  May  I  see  it  ? 

Mr.  Sullivan.  Yes,  sir  [hanclino;  letter  to  tlie  chairman]. 

Mr.  Hunt.  Is  the  record  attached? 

Mr.  SuTiLivAN.  Yes,  sir. 

The  Chairman.  It  will  be  filed  as  an  exhibit  (exhibit  No.  144). 
Did  he  file  his  felony  certificate  with  you  ? 

Mr.  Sullivan.  That,  Senator,  I  can't  tell  you.  I  can  have  that 
checked,  yes,  sir.  However,  there  is  a  law  here  in  the  State  of  Florida 
that  is  compulsory  within  10  years.  Here  is  the  last  current  record 
of  Frank  Costello.  This  individual  form  is  what  we  send  up  there 
to  find  out  about  Frank  Costello.  The  arrest  was  made  here  on  this. 
We  found  out  that  Frank  Costello,  and  they  said  his  record  and  that 
of  Frank  Saverio  were  identical.  They  were  the  same  as  the  arrest 
that  was  made  in  New  York  City  of  Costello  and  Saverio. 

The  Chairman.  So  you  have  "his  record.    What  did  you  do  with  it? 

Mr.  Sullivan.  This  is  not  the  record.  This  is  the  form  that  was 
sent  up  there  with  the  letter  to  the  FBI  in  Washington  to  try  to  get 
the  information  to  see  if  he  was  wanted  for  something  or  another,  after 
the  arrest  was  made  here  in  Dade  County.  This  is  the  last  known 
address  of  Frank  Costello. 

This  is  another  one:  Frank  Erickson.  The  last  time  he  was  ar- 
rested here,  June  8,  1939,  at  Queens  for  perjury,  second  degree. 

The  Chairman.  In  1939. 

Mr.  Sullivan.  Yes,  sir.  His  case  was  appealed  and  the  defendant 
was  released  on  certificate  of  reasonable  doubt,  and  $2,500  bond,  Judge 
Mayes  of  the  supreme  court  in  1940. 

This  is  additional  stuff  of  Frank  Erickson. 

The  Chairman.  Well,  Mr.  Sullivan 

Mr.  Sullivan.  Yes,  sir  ? 

The  Chairman.  We  know  that  there  should  have  been  records  on  all 
of  these  people.  We  don't  want  to  keep  all  your  records  here  that  you 
have.  What  are  you  trying  to  establish  by  putting  all  of  this  in  the 
record  like  that? 

Mr.  Hunt.  May  I  say  that  the  charge  has  been  made,  and  he  has 
done  the  best  he  can  to  establish  the  validity  of  these  charges. 

The  Chairman.  Here,  Frank  Costello's  record  of  an  arrest  in 
1939 

Mr.  Hunt.  You  have  to  write  off 

The  Chairman.  I  don't  see  what  1939  has  to  do  with  the  current 
year. 

Mr.  Sullivan.  Well,  I  think  that  up  to  that  time  when  we  got  this 
letter,  when  he  had  this  last  skirmish  with  the  law ;  that  is,  the  last 
time  he  was  arrested 


270  ORGANIZED    CRIIME    IN   INTERSTATE   COMMERCE 

Mr.  Halley.  May  I  ask  that  the  point  that  is  being  brought  up 
here — the  job  of  writing  and  getting  certain  police  records,  every  police 
station  in  the  United  States  has  done  that  and  does  that.  Is  that 
what  yon  are  driving  at  ? 

Mr.  Sullivan.  No,  that  has  nothing  to  do  with  that. 

Mr.  Halley.  I  don't  see  the  relevancy. 

The  Chairman.  Anyway,  let's  go  on  here  and  get  any  others  that 
you  have  here. 

Now,  are  these  your  original  records?  We  don't  want  you  to  de- 
prive yourself  the  use  of  them, 

Mr.  Sullivan.  These  were  the  FBI  records  which  we  have  obtained. 
They  are  obtained  by  each  law  enforcement  department  in  case  they 
have  inquiries  for  this  or  that  case.  In  that  case  we  pick  the  man  up 
and  see  what  additional  charges  he  has,  and  what  he  is  wanted  for. 
These  charges  we  got,  the  most  of  them  are  all  of  people  whom  we 
arrested  and  were  in  custody  for  some  charge  or  another. 

If  the  chairman  would  like  to  have  these  records,  here  is  a  little  pre- 
sentment that  I  would  also  just  like  to  show.  I  would  like  to  show  you 
the  working  of  our  office  for  3  montlis.  Of  course  that  don't  cover 
this  year.  That  covers  the  year  1946,  right  after  I  had  been  sheriff 
for  1  year. 

The  Chairman.  Well,  can  we  have  that  made  a  part  of  the  record 
also? 

Mr.  Sullivan.  Yes,  sir. 

(Record  of  Sheriff  Sullivan's  office  for  3  months,  second  quarter 
of  1946,  was  marked  "Exhibit  No.  145"  and  appears  in  the  appendix 
on  p.  781.) 

Mr.  Sullivan.  That  is  all  for  the  present  time. 

The  Chairman.  Is  there  anything  else,  Mr.  Sullivan,  that  you  want 
to  bring  out  ? 

Mr.  Sullivan.  Senator,  I  don't  have  anything  to  present  at  the 
present ;  no,  sir. 

The  Chairman.  I  think  I  should  say  by  way  of  explanation  that 
the  papers  that  Mr.  Sullivan  has  handed  me  here  are  for  the  second 
quarter  of  1946,  3  months.  The  various  arrests  are  for  all  kinds  of 
things.  The  total  for  those  months  is  1,721,  which  are  for  health 
violations;  violations  of  beverage  laws;  and  drunken  driving,  and 
reckless  driving. 

Mr.  Sullivan.  Senator,  you  will  also  notice  the  gambling  cases  that 
were  brought  in,  and  arrests  made  at  that  date  ? 

The  Chairman.  The  total  is  130  during  those  3  months.  There  are 
cases  of  drunkenness,  delinquent  children,  and  so  forth. 

Mr.  SuT.LiVAN.  Well,  I  think  this  will  show  you  our  arrests  for 
operating  gambling  places. 

The  Chairman.  Mr.  Sullivan,  just  before  we  recess  for  lunch,  these 
FBI  records,  any  law  enforcement  officer  can  get  them  by  writing 
for  them,  and  they  send  some  of  them  out  themselves.  Also  if  you 
send  a  finger]:)rint  in  to  the  FBI,  they  automatically  send  you  the 
record  ;  is  that  correct? 

Mr.  Sullivan.  Yes,  that  is  true,  yes,  it  is. 

The  Chairman.  Do  you  have  a  record  of  the  number  of  finger- 
prints you  liave  sent  in  to  the  FBI? 

Mr.  Sullivan.  I  believe  in  our  records  there  we  do  have.  It  is 
listed  in  the  records  at  the  office. 


ORGANIZED    CRIME    IN   INTERSTATE    OOJVIMERCE  271 

The  Chairman.  Do  you  know  how  many  there  were  ? 

Mr.  Sullivan.  Well,  I  don't  know  off-hand;  no,  I  don't.  On  each 
record  of  our  yearly  record  from  the  office  it  is  on. 

The  Chairman.  Do  you  have  a  record  on  Harry  Russell,  Jules 
Levitt,  Eddie  Rosenbaum,  Charles  Friedman,  and  Harold  Salvey? 

Mr.  Sullivan.  If  we  have  records  of  them  there,  they  were  not  in 
here.  ^ 

The  Chairman.  Was  it  well  known  that  they  operated  the  S.  &  G. 
Syndicate  here  in  Dade  County  ? 

Mr.  Sullivan.  They  are  probably  the  S.  &  G.  Syndicate  operators. 

The  Chairman.  What  do  you  mean,  "probably,"  Sheriff? 

Mr.  Sullivan.  That  is  what  I  mean,  probably,  because  I  can't  say 
definitely;  because  I  don't  positively  know,  but  they  probably  are, 
from  the  many,  many  reports  that  we  have,  and  the  many  arrests 
that  we  have  made  which  their  attorneys  or  bondsmen  come  in  and 
make  a  bond  or  try  to  spring  the  witnesses. 

The  Chairman.  What  are  some  of  the  things  that  make  you  think 
they  probably  are? 

Mr.  Sullivan.  Well,  as  I  say,  the  arrests  that  we  make  and  the 
rumors  that  go  around,  and  the  gossip  that  goes  around — which  it 
does. 

The  Chairman.  Do  you  mean  some  little  bookie  working  for 
them  gets  caught  and  their  attorney  comes  in  and  makes  a  bond ;  is 
that  what  you  mean  ? 

Mr.  Sullivan.  Well  that  is  one  of  the  many  things,  yes,  sir. 

The  Chairman.  What  investigations  did  you  make  of  this? 

Mr.  Sullivan.  We  have  raided  at  times,  a  number  of  the  S.  &  G. 
exchanges,  and  the  only  way  we  know  it  is  the  S.  &  G.  is  the  people 
who  make  the  bonds,  and  the  attorneys  who  represented  them. 

The  Chairman.  Did  you  get  any  of  these  people  in  when  you 
raided  ? 

Mr.  Sullivan.  Apparently  they  have  never  been  found  at  any 
one  of  the  gambling  places  that  we  have  raided  and  arrested  anyone. 

As  I  understand,  ])eople  of  the  syndicate  are  not  frequent  visitors  of 
any  gambling  establishment. 

The  Chairman.  How  about  their  books  and  records  ? 

Mr.  Sullivan.  I  mean  when 

The  Chairman.  Have  you  made  an  investigation  of  them? 

Mr.  Sullivan.  I  don't  believe  that  my  office  has  that  power  to  do 
that.  That  is  the  power  of  our  State's  attorney.  I  believe  that  our 
county  solicitor  hasn't  the  power;  however,  he  has  the  power  to 
subpena  them  in. 

The  Chairman,  All  right.  Do  you  have  any  other  general  state- 
ment you  want  to  make,  Sheriff  Sullivan?  We  are  going  to  recess 
pretty  soon. 

Mv.  Sullivan.  No,  I  was  just  speaking  of  what  you  asked  me. 

The  Chairman.  It  is  12  :  30  now.  I  think  the  committee  will  stand 
in  recess  until  1 :  15  this  afternoon.  It  is  quite  apparent  that  we 
\\  ill  have  to  get  along  very  much  faster  than  we  have  this  morning. 

We  will  stand  in  recess  until  1 :  15. 

(Thereupon  a  recess  was  taken  until  1 :  15  p.  m.) 


272  ORGANIZED    CRIME    IN    mT'ERSTATE    OOMME'RC'E 

AFTERNOON    SESSION 

(Hearing  resumed  at  1 :  27  p.  m.,  July  14,  1950.) 

The  Chairman.  I  think,  in  order  that  Sheriff  Sullivan  may  have 
any  evidence  that  pertains  to  him  before  the  committee  before  he 
finishes  his  testimony,  that  in  fairness  all  the  way  around,  since 
we  have  two  other  witnesses  that  have  something  to  say  about  the 
sheriff's  office,  it  would  be  best  to  call  them  before  he  resumes  his 
testimony. 

Mr.  Hunt.  Very  well. 

The  Chairman.  Is  Deputy  Sheriff  Hawkins  in  the  courtroom  ? 

( No  response. ) 

The  Chairman.  Is  Deputy  Sheriff  Hawkins  in  the  committee 
room  ? 

(No  response.) 

The  Chairman.  We  would  like  to  have  deputy  sheriff  called,  if 
some  one  of  the  committee's  staff  will  have  him  called. 

Mr.  Hunt.  We  will  be  glad  to  call  him. 

TESTIMONY  OF  S.  R.  FULFORD,  POLICEMAN,  TOWN  OF  MIAMI 

BEACH,  FLA. 

The  Chair3Ian.  Mr.  Fulford,  do  you  solemnly  swear  that  the  testi- 
mony you  will  give  this  commitee  will  be  the  whole  truth  and  nothing 
but  the  truth,  so  help  you  God  ? 

]\Ir.  Fulford.  I  do. 

The  Chairman.  Will  you  proceed  with  the  questioning  of  Mr. 
Fulford? 

Mr.  Halle Y.  Mr.  Fulford,  were  you  ever  on  the  staff  of  the  sheriff 
of  Dade  County,  Fla.  ? 

Mr.  Fulford.  I  was. 

Mr,  Halley.  During  what  time  ? 

Mr.  Fulford.  From  the  1st  of  July  1943  until  November  1,  1947. 

Mr.  Halley.  In  what  capacity  did  you  serve  ? 

Mr.  Fulford.  I  served  as  a  deputy  sheriff. 

Mr.  Halley.  You  served  as  a  deputy  sheriff  ? 

Mr.  Fltlford.  Yes. 

Mr.  Halley.  ^Yhilt  were  your  duties  ? 

Mr.  Fltlford,  Well,  when  I  went  with  the  sheriff's  office  I  served 
a  number  of  months  on  the  road  patrol;  then  I  served  up  there  on 
the  desk,  dispatching  and  taking  care  of  the  jail  at  night;  I  did  that 
for  a  month,  I  believe,  and  then  I  went  from  there  to  the  civil  depart- 
ment where  I  was  at  the  time  I  resigned  on  October  25, 1947. 

Mr.  Halley.  "Wliat  have  you  been  doing  since  ? 

Mr.  Fulford.  I  am  a  policeman  for  the  town  of  North  INIiami. 

Mr.  Halley.  Have  you  been  in  that  job  ever  since  you  left  the 
sheriff^'s  office? 

ISIr.  Fulford.  Yes. 

IVIr.  Halley.  Do  you  know  a  man  by  the  name  of  Hodges  ? 

Mr.  Fulford.  Yes;  I  do, 

Mr.  Halley.  Do  you  know  whether  there  is  any  family  relationship 
between  Thomas  Hodges  and  Deputy  Sheriff  Burke? 


ORGANIZED   CR'IME    IIST    INTERSTATE    COMMERCE  273 

Mr.  FuLFORD.  Nothing  more  than  what  a  lady  told  me  who  was 
working  out  of  this  restaurant  on  North  River  Drive.  She  said  that 
he  was  a  brother-in-law  of  Tom  Burke. 

Mr.  Halley.  Who  was  the  lady  ? 

Mr.  FuLFORD.  She  said  she  was  Mrs.  Hodges. 

Mr.  Halley.  About  when  did  you  speak  to  this  lady  you  are  talking 
about,  Mrs.  Hodges? 

Mr.  FuLFORD.  It  was  sometime  in  the  summer  of  1947. 

Mr.  Halley.  In  the  summer  of  1947? 

Mr.  FuLFORD.  Yes.  It  may  have  been  late  spring;  it  was  during 
that,  thought ;  it  was  before  July,  1947. 

Mr.  HalT;EY.  Did  you  stop  at  this  restaurant  run  by  Mr.  and  Mrs. 
Hodges  at  that  time? 

Mr.  FuLFORD.  I  stopped  at  this  restaurant  where  the  lady  identified 
herself  as  Mrs.  Hodges  worked. 

Mr.  Halley.  How  did  you  happen  to  stop  there  ? 

Mr.  FuLFORD.  I  went  out  there  to  pick  up  an  automobile  on  a  court 
order,  and  in  returning  I  asked  my  partner  if  he  w^anted  to  stop  and 
get  something  to  eat.  He  said,  "Yes,  I  am  hungry,  too."  I  said, 
"Let's  stop  at  Pop  Ley's  place.''  The  last  time  I  was  in  this  place  it 
was  operated  by  Mr.  Ley ;  he  is  known  as  Pop  Ley. 

Mr."  Halley.  What  is  your  partner's  name  ? 

Mr.  Fulford.  At  that  time  it  was  Mr.  Goldman. 

Mr.  Halley.  What  is  his  name? 

Mr.  Fulford.  Abe. 

Mr.  Halley.  A-b-e? 
'  Mr.  Fulford.  That's  right. 

Mr.  Halley.  Is  he  still  in  the  sheriff's  office  ? 

Mr.  Fulford.  No,  sir. 

Mr.  Halley.  Mr.  Fulford,  what  happened  when  you  stopped  at 
this  restaurant? 

Mr.  Fulford.  We  went  in  and  sat  down  at  a  counter,  and  this  lady 
came  by  and  she  took  our  order.  I  asked  for  Mr.  Ley  and  she  said  he 
wasn't  there  any  more,  that  he  had  moved.  So  we  ordered  some  barbe- 
cued ribs,  and  in  the  meantime  she  came  out  and  there  was  a  conver- 
sation between  her  and  Mr.  Goldman.  She  asked  us  if  we  were  detec- 
tives and  Goldman  asked  her  why  she  asked  that,  and  she  said,  "You 
look  like  it."  So  we  told  her  we  were  from  the  sheriff's  office,  in  the 
civil  department,  and  she  said,  "I  have  a  brother-in-law" — that  lady 
Avho  a  few  minutes  before  had  identified  herself  that  she  was  Mrs. 
Hodges,  said  that  she  was  the  wife  of  Mr.  Hodges  and  that  Mr.  Hodges 
was  a  brother-in-law  of  Mr.  Burke.  I  said,  "Who;  that  old  man?" 
and  she  said,  "You  better  not  call  him  old."  That  was  the  end  of  our 
conversation  while  we  were  there  at  that  time. 

Mr.  Halley.  W^iat  happened  next  after  that? 

Mr.  Fulford.  We  came  to  the  office,  and  either  that  day  or  the  fol- 
lowing day  the  chief  of  the  criminal  division  sent  for  us  to  come  up. 
Mr.  Harkness,  who  was  then  chief  of  the  civil  department,  told  us 
that  Mr.  Hawkins  wanted  to  see  us.  So  Goldman  and  I  went  up  to 
see  him,  and  he  asked  me  what  were  we  doing  out  there  at  this  bookie 
joint,  and  I  said,  "What  bookie  joint."  He  said,  "Do  what  you  ought 
to  do,  but  not  go  back  down  there."  He  said  we  were  out  there  in 
that  restaurant.  I  asked  him  where  he  got  his  information  from  and 
he  said  he  got  it  from  Mr.  Burke. 


274  lORGANIZE'D   CRIIME    IN   ESTTE ESTATE    COMMERCE 

Mr.  Halley.  What  happened  next  ? 

Mr.  FuLFORD.  The  following  day  after  limch  I  was  standing  in  the 
door  of  the  civil  department  when  Mr.  Burke  came  along.  I  called 
to  him  and  he  said,  "What  do  you  want,"  so  I  walked  up  to  him  and 
hit  him  on  the  shoulder  and  took  him  into  the  office  and  I  asked  liim 
why  he  was  going  around  trying  to  start  something  about  where  I 
stopped  to  eat.  I  said  to  him,  "I  will  eat  anywhere  I  want  to  eat  so 
long  as  I  have  the  money  to  pay  for  it."  I  said  furthermore,  "I  would 
like  for  you  to  keep  out  of  my  business,  because  if  you  don't" — Captain 
Buford  who  at  that  time  was  chief  deputy 

Mr.  Halley.  Wliat  is  his  name  ? 

Mr.  FuLFORD.  Buford.  I  said  to  Burke,  "If  you  don't  keep  out  of 
my  business  I  will  stomp  the  hell  out  of  you,  and  I  will  eat  anywhere 
1  like  to  eat."  Likewise  I  told  Mr.  Hawkins.  So  I  guess  Mr.  Burke 
decided  that  I  w\as  possibly  upset  and  intended  to  try  it,  so  he  moved 
off  and  quieted  down,  and  then  he  wanted  to  talk.  I  said  to  him,  "I 
didn't  know  there  was  a  bookie  joint  out  there.  I  stopped  in  that 
restaurant  to  eat."  He  said,  "Well,  it  is  out  there  for  you  and  if  you 
don't  get  it  it  is  your  own  damn  fault.  If  you  can't  get  it  there  I  can 
take  you  to  a  couple  other  places." 

Mr.  Halley.  Get  what ;  what  was  he  talking  about? 

Mr.  FuLFORD,  Money.  I  asked  him,  "Why  did  you  go  to  Mr.  Haw- 
kins? There  was  no  shakedown  there."  He  said,  "If  you  don't  get 
it,  it  is  your  own  fault ;  if  it  is  not  there,  I  can  take  you  to  a  couple 
places,"  and  then  he  walked  off,  and  I  have  never  spoken  to  him  since. 

Mr.  Halley.  Did  you  say  there  was  plenty  for  everyone? 

Mr.  FuLFORD.  Yes. 

Mr.  Halley.  Was  anybody  else  present  during  this  conversation  ? 

Mr.  FuLFORD.  Yes.  It  was  Mr.  Goldman,  who  was  working  with 
me  at  the  time,  and  there  was  another  deputy  also  in  tlie  office,  but 
when  the  little  skirmish  started  he  got  out  about  half  way  between  the 
door  and  the  exit. 

Mr.. Halley.  What  is  that  other  deputy's  name? 

Mr.  FuLFORD.  Harry  Cheetham. 

Mr.  Halley.  Did  Goldman  hear  this;  was  he  right  there? 

Mr.  FuLFORD.  Yes.    Goldman  was  standing  there. 

Mr.  Halley.  Goldman  was  the  man  who  was  with  you  when  you 
went  into  this  Hodges'  restaurant;  is  that  right? 

Mr.  FuLFORD.  Yes.    There  was  no  bookie  joint  in  that  restaurant. 

Mr.  Halley.  During  the  year  1947  did  you  have  occasion  to  go  into  a 
dry-cleaning  place  out  there  at  the  shack? 

Mr.  FuLFORD.  Out  on  Southwest  Eighth  Street? 

]\Ir.  Halley.  Yes. 

Mr.  FuLFORD.  That's  right. 

INIr.  Halley.  Will  you  tell  us  what  happened  ? 

Mr.  FuLFORD.  We  had  another  court  order  on  an  automobile  and 
we  had  four  or  five  different  addresses. 

Mr.  Halley.  Who  do  you  mean  by  "We?" 

Mr.  FuLFORD.  Goldman  and  I.  We  worked  together  for  the  last 
year  and  a  half  I  was  there.  He  came  in  tliere  after  I  was  working 
there,  and  he  worked  with  me  I  thiuk  for  approximately  a  year  and  a 
half.  I  lived  out  there  near  this  little  shack  dry-cleaning  place,  and 
it  is  convenient  for  me  to  have  my  dry  cleaning  done  there.    I  had 


ORGANIZED   CRIME    IN   ESTTERSTATE    OOMMERCiE  275 

lived  around  there  for  about  a  year  and  a  half.  Well,  I  searched  the 
tourist  camp  to  no  avail,  and  I  went  to  this  lady  who  runs  the  dry- 
cleaning  place  there  and  I  asked  her  if  she  had  such  a  name  as  that  on 
her  book.  I  thought  possibly  that  if  he  stayed  in  that  place  he  would 
leave  his  laundry  there  with  her.  She  said  "No."  I  described  the  car 
to  her  and  she  said  the  only  person  who  could  have  an  automobile  like 
that  would  be  the  peo]ile  in  the  back.  She  faces  Eighth  Street.  Mr. 
Goldman  asked  her,  "What  do  you  mean  in  back,"  and  she  said,  "Well, 
there  is  a  bookie  joint  going  on  back  there." 

She  has  a  litle  boy  who  I  suppose  is  around  12  or  13  years  old  now 
and  I  have  known' him  since  before  he  started  going  to  school,  and  he 
came  to  me  and  he  said,  "Mr.  Fulford,  they  have  a  lot  of  telephone 
wires  in  there.  We  children  were  out  there  playing  and  they  called 
us  some  awful  names  and  chased  us  away."  I  said.  "What  were  you 
doing,"  and  he  said,  "We  were  peeping  through  the  crack."  So  Mr. 
Goldman  told  me — he  says,  "You  set  your  watch  with  mine,  and  I  am 
going  to  walk  across  there  and  in  5  minutes  follow  me."  We  set  our 
watches  together  and  in  5  minutes  I  walked  over  there.  During  the 
time  that  he  was  over  there,  I  don't  know  what  happened.  I  didn't 
see  it.  At  the  end  of  5  minutes  I  walked  over  and  when  I  arrived  he 
was  talking  to  a  man,  and  I  walked  up  within  about  5  feet  and  stopped, 
and  of  course  I  heard  most  of  the  conversation  from  there  on  out. 

Mr.  Halley.  Who  was  talking? 

Mr.  Fulford.  Mr.  Goldman  was  talking  to  a  man  who  I  learned 
came  out  of  this  building  back  of  the  Eight  Twenty  Bar. 

Mr.  Halley.  What  was  the  conversation? 

Mr.  Fulford.  What  had  gone  on  before  I  don't  know.  I  don't 
know  whether  Mr.  Goldman  identified  himself  as  a  deputy  sheriff  or 
not,  but  he  asked  ]\Ir.  Goldman  in  my  presence — he  said,  "Do  you 
know  Mr.  Burke  and  Mr.  Branning,"  and  he  says,  "Yes,  I  do,"  and  he 
says,  "They  are  the  big  shots  down  there,  are  they  not."  I  don't  know 
what  the  reply  was.  I  didn't  hear  what  Mr.  Goldman  said.  But  I  saw 
this  man  Mr.  Goldman  was  talking  to  write  down  a  name  and  telephone 
number,  which  I  later  learned  was  his  telephone  number. 

Mr.  Halley.  Do  you  know  the  name  of  the  man  that  Goldman  was 
talking  to  ? 

Mr.  Fulford.  If  my  memory  serves  me  right  his  name  was  Hoskins. 

Mr.  Halley.  Hoskins  ? 

Mr.  Fulford.  Yes. 

Mr.  Halley.  Do  you  know  why  he  wrote  this  name  down ;  did  you 
hear  anything  about  the  reason  for  writing  the  name  and  telephone 
number  down  ? 

Mr.  Fulford.  Yes ;  I  did.  I  heard  Mr.  Goldman  say,  "If  these  fel- 
lows are  close  to  you  maybe  you  should  give  me  your  telephone  num- 
ber where  I  can  get  in  touch  with  you,"  and  he  wrote  the  number  and 
name  down  on  a  piece  of  paper  that  he  took  out  of  his  pocket. 

Mr.  Halley.  Did  you  and  Golchnan  make  an  arrest  at  that  time  ? 

Mr.  Fulford.  No  ;  we  didn't.     We  didn't  even  go  into  the  place. 

Mr.  Halley.  Why  not? 

Mr.  Fulford.  Well,  my  understanding  was  when  I  went  to  the  civil 
department  that  I  was  to  do  civil  work  except  the  few  times  I  was  called 
out  on  Saturday  afternoon  to  go  with  some  member  of  the  criminal 
division. 


276  lORG'AJSnZEP   CRIIME    IK    INTERSTATE    COMME'RCE 

Mr.  Halley.  Mr.  Goldman  was  a  member  of  the  criminal  division  ? 

Mr.  Fltlford.  No;  Mr.  Goldman  was  in  the  civil  department  the 
same  as  I  was.  At  this  particular  place  the  door  was  locked  and  we 
couldn't  make  an  arrest ;  we  didn't  see  anything  on  which  to  make  an 
arrest. 

Mr.  Halley.  Did  you  ever  have  a  conversation  with  Deputy  Hawk- 
ins about  raiding  gambling  places  ? 

Mr.  FuLFORD.  He  told  Mr.  Goldman  and  I  one  afternoon  that  we 
"v^ere  to  lay  off  of  any  raids. 

Mr.  Halley.  What  was  the  occasion  for  saying  that ;  what  had 
happened  ? 

Mr.  FuLFORD.  That  was  over  on  the  beach ;  we  had  made  a  raid  over 
there. 

Mr.  Halley.  Who  made  the  raid  ? 

Mr.  Fui.FORD.  Mr.  Goldman  and  I. 

Mr.  Halley.  Did  you  make  an  arrest? 

Mr.  FuLFORD.  We  did. 

Mr.  Halley.  Right  after  that  did  you  have  this  talk  with  Deputy 
Harkness  ? 

Mr.  FuLEORD.  That's  right. 

Mr.  Halley.  He  said  you  were  not  to  raid  any  more  gambling 
places ;  is  that  right? 

Mr.  FuLFORD.  Yes. 

Mr.  Halley.  Did  he  say  where  the  order  came  from  ? 

Mr.  FuLFORD.  I  don't  recall.  He  stood  there  and  talked  a  little  bit. 
He  seemed  to  hesitate  to  hurt  our  feelings.  He  said  that  that  was  the 
chief's  orders  and  that  we  were  not  to  do  anything  any  more. 

Mr.  Hali^y.  You  are  sure  he  didn't  say  that  the  order  came  from 
Sheriff  Sullivan  ? 

Mr.  FuLFORD.  He  possibly  could  have  said  that,  but  I  couldn't  say 
because  there  is  a  lot  of  noise  in  there,  and  of  course  Mr.  Harkness  is  a 
very  old  man  and  he  don't  talk  too  loud. 

Mr.  Halley.  Did  he  say  that  the  order  had  come  from  someone  other 
than  himself  ? 

Mr.  FuLFORD.  Yes ;  but  he  didn't  say  who. 

Mr.  Halley.  He  did  say  that  they  were  the  orders  ? 

Mr.  FuLFORD.  Yes. 

Mr.  Halley.  Did  you  ever  ask  Hawkins  of  the  sheriff's  office  to  raid 
a  house  of  prostitution? 

Mr.  FiTLFORD.  I  talked  to  him  for  quite  a  while ;  over  a  year. 

Mr.  Halley.  During  what  period  was  this  ? 

Mr.  FuLFORD.  It  was  through  1946  and  up  until  1947,  the  day  that 
I  resigned. 

Mr.  Halley.  Was  the  place  raided  ? 

Mr.  Fulford.  It  was  raided  the  day  I  resigned. 

Mr.  Halley.  How  long  after  the  first  complaint  was  that  ? 

Mr.  Fulford.  I  had  been  complaining  about  it  for  quite  a  while: 
approximately  a  year. 

Mr.  Halley.  Why  did  you  resign  ?  What  was  the  occasion  of  your 
resignation  ? 

Mr.  Fulford.  The  day  following  this  episode  at  the  820  Bar,  Mr. 
Goklman  was  fired.  He  came  out  to  tell  me  he  was  fired.  Then  I 
went  in  and  asked  Sheriff  Sullivan  could  I  talk  to  him  a  minute,  be- 
cause I  figured  if  Mr.  Goldman  was  fired  for  somethinjr  that  he  did 


ORGANIZED    CRIME    IN    INTERSTATE    COMMERCE  277 

in  line  of  duty,  I  was  out  there  too  and  I  wouldn't  want  to  make  the 
same  mistake  again  if  I  stayed  on. 

The  sheriff  refused  to  talk  to  me,  so  I  resigned  effective  then  and 
I  remained  there  until  the  1st  of  November,  until  he  got  some  men  to 
take  our  places, 

Mr.  Halley.  And  then  did  you  get  the  job  you  presently  hold  ? 

Mr.  FuLFOKD.  That  is  right. 

Mr.  Halley.  Is  there  anything  else  you  know  that  you  woidd  want 
to  tell  this  connnittee  about  the  operations  of  the  sheriff's  office? 

Mr.  FuLFORD.  No.  When  I  was  there,  I  put  everything  I  had  into 
my  work,  and  I  went  ahead.  I  had  about  all  I  could  do  anyway.  I 
had  a  lot  of  work  to  do  and  of  course  at  night  during  the  winter 
season  I  worked  the  two  dog  tracks. 

Mr.  Halley.  Do  you  know  whether  Harry  Cheetham  is  still  in  the 
sheriff's  office  ? 

Mr.  FuLFORD.  I  haven't  seen  Mr.  Cheetham  in  4  or  5  months.  As 
far  as  I  know,  he  is. 

Mr.  Halley.  And  you  said  that  Mr.  Goldman  is  not;  is  that  right? 

JNIr.  FuLFORD.  That  is  right.  Mr.  Goldman  was  fired  the  25tTi  of 
October  1947. 

Mr.  Halley.  Do  you  know  i  f  he  is  in  Miami  ? 

Mr.  FuLFORD.  Yes ;  he  is  in  Miami. 

Mr.  Halley.  Would  you  be  able  to  give  the  committee  his  address? 

Mr.  FuLFORD.  Mr.  Goldman  has  moved  and  I  don't  know  his  address, 
but  I  know  his  telephone  number  because  he  still  has  the  same  tele- 
phone number.  I  just  came  back  off  my  vacation  and  he  moved  just 
before  I  left. 

Mr.  Halley.  When  you  leave  the  witness  stand,  would  you  give 
that  number  to  Mr.  Garrett  of  the  committee's  staff  ? 

Mr.  FuLFORD.  Yes,  sir. 

Mr.  Halley.  Have  you  by  any  chance  noticed  either  Mr.  Goldman 
or  Mr.  Cheetham  in  the  courtroom  ? 

Mr.  FuLFORD.  I  haven't  seen  either  one  of  them  in  here.  Wlien  I 
was  standing  back  and  looking  over  the  crowd,  I  didn't  see  either  one 
of  them. 

Mr.  Halley.  Following  which  incident  did  you  resign?  I  think 
you  testified  that  Goldman  was  fired  and  then  you  quit.  What  was 
it  that  happened  leading  to  Goldman's  being  fired  ? 

Mr.  FuLFORD.  I  don't  know.  That  is  what  I  went  in  to  ask  the 
sheriff  about,  but  he  wouldn't  tell  me. 

Mr.  Halley.  After  which  of  the  matters  that  you  testified  to  did 
it  occur  ? 

Mr.  FuLFORD.  This  was  the  one  out  on  the  Trail  and  Le  Jeune  Road, 
at  the  820  Club.     The  next  dav  after  that  Mr.  Goldman  was  fired. 

Mr.  Halley.  What  happened  at  the  820  Club? 

Mr.  FuLFORD.  That  is  where  he  went  back  to  the  back  and  5  minutes 
later  I  walked  back  there  myself,  and  he  w^as  talking  to  a  man,  Hoskins 
I  think  was  his  name,  and  he  was  the  man  who  gave  Mr.  Goldman  a 
name  and  some  numbers  on  a  sheet  of  paper.  I  saw  it  at  a  distance. 
I  never  did  look  at  them. 

Mr.  Halley.  I  think  you  testified  that  Goldman  got  into  an  argu- 
ment with  Burke,  or  that  you  and  Goldman  got  into  an  argument 
with  Burke? 


278  ORGAJSriZED   CRIIME    IN   INTERSTATE    OOMMEKCE 

Mr.  FuLFORD.  Mr,  Burke  reported  to  Mr.  Hawkins.  That  was  after 
this  affair  at  Hodge's  place,  but  that  was  some  time  prior  to  that. 

Mr.  Halley.  I  have  no  further  questions. 

The  Chairman.  Senator  Hunt,  do  you  have  any  questions  ? 

Senator  Hunt.  I  have  no  questions. 

The  Chairman.  I  have  no  questions,  Mr.  Fulf ord.  Tliank  you  very 
much. 

Mr.  FuLFORD.  Thank  you. 

The  Chairman.  Mr.  Goldman's  name  has  been  brought  out  in  this 
matter  and  I  would  like  for  the  staff  to  see  if  they  can  find  him.  Let's 
see  if  we  can't  present  this  testimony  briefly.     Is  Mr.  Hawkins  here  ? 

Mr.  Hawkins.  Yes,  sir. 

The  Chairman.  All  right.     Come  around,  ]\Ir.  Hawkins. 

TESTIMONY  OF  J.  L.  HAWKINS,  CHIEF  CRIMINAL  DEPUTY, 
SHERIFF'S  OFFICE,  DADE  COUNTY,  FLA. 

The  Chairman.  Do  you  solemnly  swear  that  the  testimony  you  will 
give  this  committee  will  be  the  whole  truth  and  nothing  but  the  truth, 
so  help  you  God  ? 

Mr.  Hawkins,  I  do. 

The  Chairman.  All  right,  Mr.  Halley. 

Mr.  Halley.  Did  you  hear  the  testimony  of  the  last  witness  ? 

Mr.  Hawkins.  No,  sir,     I  just  arrived, 

Mr.  Halley,  Did  you  ever  have  occasion  to  reprimand  any  of  the 
deputy  sheriffs  in  the  sheriff's  office  ? 

Mr,  Hawkins,  At  times, 

Mr,  Halley,  What  was  your  position  in  the  sheriff's  office  ? 

Mr,  Hawkins,  During  what  years,  sir? 

Mr,  Halley.  Will  you  state  when  you  first  entered  the  sheriff's 
office? 

Mr.  Hawkins.  January  2, 1945,  as  a  bookkeeper  until  March  of  1946. 

Mr.  Halley.  And  then  what  position  did  you  hold? 

Mr.  Hawkins.  Then  I  went  to  the  hospital  and  when  I  came  out 
from  the  hospital  I  was  transferred  upstairs. 

Mr.  Halley.  To  what  position  ? 

Mr.  Haavkins.  Chief  criminal  deputy. 

Mr.  Halley.  How  long  did  you  hold  that  job? 

Mr.  Hawkins.  Up  until  this  present  date, 

Mr.  Halley.  You  are  still  chief  criminal  deputy? 
_^  Mr.  Hawkins.  Yes,  sir. 

Mr,  Halley,  Have  you  ever  heard  of  a  man  named  Thomas  Hodges? 

Mr.  Hawkins,  Yes,  sir, 

Mr,  Halley.  Will  you  state  whether  or  not  you  know  whether  he  is 
related  to  Deputy  Sheriff  Burke? 

Mr.  Hawkins.  I  have  heard  some  hearsay.  I  couldn't  sa}^  under 
oath  that  I  did  know  it.     I  heard  hearsay  of  it. 

Mr,  Halley,  Bearing  in  mind  that  it  is  hearsay,  would  you  state 
to  the  couunittee  what  the  hearsay  is? 

Mr,  Hawkins.  The  hearsay,  yes;  I  believe  brother-in-law. 

Mr.  Halley.  Did  it  ever  come  to  your  attention  that  Deputy  Sheriff 
Abe  Goldman  and  Deputy  Sheriff  S.  R.  Fulford  had  been  at  a  restau- 
rant operated  by  Thomas  Hodges  and  Mrs.  Hodges? 


ORGANIZED    CRIME    IN    INTE'RSTAT'E    COMMERCE  279 

Mr.  Hawkins.  It  w^is  never  called  to  my  attention,  sir.  They 
worked  under  the  branch  of  the  civil  department. 

Mr.  Hai.ley.  I  will  try  to  restate  the  testimony  that  the  committee 
has  just  heard,  in  which  Mr.  Fulford  said  that  he  and  (ioldman  visited 
the  restaurant  operated  l)y  Mr.  Hodp's  and  Mrs.  Hodges,  and  that 
t  he  next  day  you  reprimanded  them  for  going,  I  think  he  said,  "to  that 
bookie  joint." 

Mr.  Hawkixs.  Xo,  sir. 

Mr.  Halley.  And  he  said  that  you  told  them  to  lay  off  of  gambling. 

Mr.  Hawkins.  No,  sir. 

Mr.  Halley.  That  did  not  happen  ? 

Mr.  Hawkins.  Xo,  sir.    May  I  interrupt? 

Mr.  Halley.  Please. 

Mr.  Hawkins.  If  there  would  be  any  such  thing  like  that,  I  would 
have  referred  it  to  the  civil  department.  They  didn't  get  their  explicit 
orders  from  me.  If  they  were  assigned  to  my  department  for  any 
such  work  as  investigating  gambling,  then  I  would  consider  them 
under  my  command  for  that  particular  occasion,  but  they  specifically 
worked  out  of  the  civil  department,  and  I  at  no  time  reprimanded 
any  man  for  making  an  investigation  of  any  gambling  or  an  arrest  in 
any  gambling.    In  fact.  I  give  them  a  pat  on  the  shoulder  for  it. 

Mr.  Halley.  JMr.  Fulford  testified  that  he  complained  several  times 
to  you  about  a  house  of  prostitution  in  operation  very  close  to  the 
place  where  he  resided. 

Mr.  Hawkins.  I  don't  know  where  he  resided  at  that  time. 

Mr.  Halley.  Did  he  ever  complain  to  you  about  a  house  of  prostitu- 
tion ? 

"SLv.  Hawkins.  Any  complaints  on  houses  of  prostitution  were  im- 
mediately investigated  and  if  arrests  were  made,  which  our  records 
will  show,  arrests  were  made. 

Mr.  Halley.  Would  you  answer  the  question?  The  question  was. 
Did  Mr.  Fulford  ever  complain  to  you  about  a  house  of  prostitution? 

Mr.  Hawkins.  That  I  couldn't  say  from  memory.  We  had  several 
deputies  from  there  who  made  complaints.  He  may  have,  but  I 
wouldn't  remember  right  now.  Mr.  Halley — is  that  your  name? 

Mr.  Halley.  Yes. 

Mr.  Hawkins.  I  wouldn't  remember  right  now. 

^Ir.  Halley.  You  have  no  recollection  ? 

Mr.  Hawkins.  Not  right  offhand.  We  have  had  numerous  com- 
plaints, and  they  Avere  immediately  investigated  and  arrangements 
made  for  trying  to  make  an  arrest  and  conviction  in  the  court,  which 
we  had  plenty  of.  sir. 

Mr.  Halley.  Mr.  Fulford  said  he  complained  to  you  off  and  on 
about  that  house  and  it  was  finally  raided  the  day  or  the  day  after  he 
resigned. 

Mr.  Hawkins.  What  address;  may  I  ask  that  question? 

]Mr.  Halley.  I  am  sorry,  but  I  don't  have  that  information  for  you, 
but  I  am  sure  Mr.  Fulford  does. 

Is  Mr.  Fulford  in  the  courtroom? 

Aside  from  the  address  which  I  wouldn't  expect  you  to  remember, 
don't  you  remember  whether  or  not  Mr.  Fuiford  over  the  period  of  a 
year  complained  to  you  about  a  house  of  prostitution? 

Mr.  Hawkins.  No,  sir.  Any  complaint  in  regard  to  houses  of 
prostitution  or  any  complaints  of  any  violation  of  the  law  were  in- 

68058 — 50— pt.  1 19 


280  ORGANIZEIV   CMME    IN   INTERSTATE   COMMERCE 

vestigated  as  soon  as  possiblie ;  at  all  hours  of  the  night  and  the  early 
morning. 

Mr.  Halley.  Mr.  Fulford,  Mr.  Hawkins  said  he  doesn't  remember 
whether  or  not  you  complained  about  a  house  of  prostitution,  but  I 
think  he  has  indicated  that  he  w^ould  like  to  know  the  address  of  the 
particular  place  that  you  had  in  mind. 

Mr.  Fulford.  The  same  place  I  knocked  off;  on  the  corner  of 
Twelfth  Street  and  Seventy-first  Avenue  SW. 

Mr.  Hawkins.  They  have  been  arrested  half  a  dozen  times. 

Mr.  Fulford.  That  is  right. 

Mr.  Hawkins.  And  not  from  complaints  only,  but  from  the  people 
who  lived  in  the  neighborhood  also. 

Mr.  Halley.  Will  the  records  of  the  sheriff's  office  show  whether 
it  was  arrested  for  1  year  prior  to  the  date  that  Mr.  Fulford  resigned  ? 

Mr.  Hawkins.  That  I  couldn't  say,  Mr.  Halley. 

Mr.  Halley.  The  records  show  that  one  way  or  the  other. 

Mr.  Hawkins.  It  is  there  on  the  record  what  date  it  was.  I  know 
I  personally  conducted  two  arrests  at  the  place  myself. 

Mr.  Halley.  Would  you  check  the  records  and  bring  them  to  the 
committee  at  your  earliest  convenience  ? 

Mr.  Hawkins.  I  would  be  happy  to,  sir. 

Mr.  Halley.  Thank  you. 

The  Chairman.  That  is  all. 

Mr.  Hawkins.  Thank  you. 

The  Chairman.  Is  Mr.  James  Ivo  present? 

(No  response.) 

The  Chairman.  See  if  you  can  find  Mr.  Ivo. 

Meanwhile  Mr,  Jack  Fulenwider  will  come  around. 

TESTIMONEY    OF    JACK   FULENWIDER,    FORMER    INVESTIGATOR 
FOR  CRIME  COMMISSION  OF  GREATER  MIAMI 

The  Chairman.  Do  you  swear  tlie  testimony  you  will  give  this  com- 
mittee will  be  the  whole  truth  and  nothing  but  the  truth,  so  help  you 
God? 

Mr.  Fulenwider.  I  do. 

The  Chairman.  Mr.  Fulenwider,  did  you  work  for  the  Greater 
Miami  Crime  Commission  doing  investigations  at  one  time? 

Mr.  Fulenwider.  Yes,  sir. 

The  Chairman.  On  what  occasion  did  you  have  first-hand  evidence 
of  some  alleged  violations  and  did  you  report  it  to  somebody ;  and  if  so, 
tell  what  you  saw  and  what  you  reported  and  what  happened. 

Mr.  Fulenwider.  On  Monday,  February  27,  1950,  I  was  sent  on  an 
investigation  by  Dan  Sullivan  to  investigate  two  men  who  were  sup- 
posed to  be  either  tapping  telephone  lines  or  installing  telephones  in 
bookies  on  the  beach.  I  liad  the  information  that  these  men  lived  at 
3799  Northwest  Twelfth  Terrace  in  Miami  and  that  they  left  the  house 
around  9  o'clock  in  the  morning.  I  went  to  this  address  and  arrived 
at  the  address  at  8  :  20  a.  m. 

Of  the  two  men  that  were  described  to  me,  one  was  about  30  years 
old,  5  feet  11  inches,  185  pounds,  with  black  hair,  and  had  a  pock- 
marked face.  The  other  fellow  was  about  5  feet  8  inches,  about  185, 
round  face,  light  complexion,  slightly  bald,  and  chubby.  That  is  all 
the  description  we  had  on  the  men. 


ORGANIZEl>  CMME    IN   ENTKRSTATE   OOMMEROE  281 

When  we  arrived  at  this  address  we  saw  two  men  come  ont  of  the 
house  that  answered  this  description.  They  got  into  a  LaSalle  sedan 
at  8 :  20  a.  m.  and  they  headed  north  on  Thirty-seventh  Avenue  to 
Seventeentli  Street  NW.,  east  to  Twenty-seventh  Avenue  and  north 
to  Twentieth  Street  and  proceeded  toward  Miami  Beach. 

The  driver  of  this  car  was  a  very  wild  driver.  He  really  got  in  and 
out  of  traffic,  and  we  lost  him  at  Northeast  Second  Avenue  and  Twenti- 
eth Street. 

The  CiiAiRMAX.  Just  give  us  such  details  as  are  necessary  to  get  up 
to  the  point. 

Mr.  FuLENWiDER.  I  picked  up  the  car  again  in  the  back  of  an  address, 
600  Lincoln  Road,  where  there  was  a  sound  company  called  the  Twin 
City  Sound  Co.  there. 

About  10  minutes  after  we  arrived  there,  these  two  men  came  out 
of  the  sound  company,  got  in  their  car,  and  they  started  out  the  alley. 
At  about  the  same  time  they  started  out,  the  telephone-company  truck 
pulled  in  and  the  driver  of  the  truck  hollered  to  them  to  stop.  So 
they  got  out  in  the  street  and  the  three  men — the  man  got  off  the  truck 
and  the  two  men  got  out  of  the  car  there — talked  for  3  or  4  minutes. 

The  truck  driver  backed  his  truck  up  and  pulled  down  an  alley  in  the 
700  block  on  Lincoln  Road  and  the  car  with  the  two  men  followed.  I 
stood  there  and  watched  the  two  men  and  the  truck  driver  unload  tele- 
phone equipment — telephones,  boxes,  different  things  out  of  this  truck 
into  the  automobile  for  about  15  minutes. 

We  followed  the  car  then  north  to  Collins  Avenue  to  the  San  Souci 
Hotel.  They  parked  in  the  rear  of  the  hotel  and  the  No.  2  man  entered 
the  hotel  and  the  No.  1  man  sat  in  the  car  a  few  minutes  and  then  he 
went  in  the  cabana  section  of  the  hotel  and  they  were  in  there  for 
quite  some  time,  and  the  one  man  would  carry  a  box  of  tools  with  him. 

They  came  out  and  went  into  the  Embassy  Hotel  across  the  street 
from  the  San  Souci  Hotel  with  the  tools  and  the  equipment.  They 
were  only  in  there  a  few  minutes  and  then  they  came  out  of  there. 

Both  men  went  into  the  Sea  Isle  Hotel  at  2 :  30  p.  m.  that  day,  and 
at  2 :  40  p.  m..  10  minutes  after  they  entered  the  hotel,  the  pock-faced 
boy  came  back  out  and  got  a  dial  telephone  out  of  his  car  and  went 
back  into  the  hotel.  The  one  fellow  stayed  there  and  this  other  guy 
came  out  and  went  to  an  address  at  1528  Drexel  Avenue,  which  I 
believe  the  property  there  is  owned  by  Jules  Levitt.  He  was  in  there 
for  a  few  minutes  and  then  came  out  and  went  to  the  Bancroft  Hotel, 
all  the  time  carrying  his  tools  in  the  building  or  the  hotel,  whichever 
he  went  into. 

The  Chairman.  Did  you  see  some  wire,  horse-racing  or  telephone 
equipment  somewhere,  and  did  you  report  it?  Let's  get  down  to  the 
meat  of  what  you  have  to  sny. 

Mr.  FuLENWiDER.  I  had  a  telephone  investigator  with  me  the  next 
day  and  we  went  up  by  the  Sea  Isle  Hotel  and  stood  outside  of  Cabana 
No.  22  and  heard  results  from  the  races  right  at  2  o'clock. 

We  went  inside  the  hotel  and  I  watched  this  cabana  No.  22,  and  I 
saw  several  telephones  in  there — dial  telephones — about  three  or  four 
dial  telephones  in  there  in  the  cabana  and  they  were  making  book 
all  right.  Everybod}^  had  scratch  sheets  and  pencils  and  when  this 
one  fellow  spotted  me — I  think  he  suspected  me — he  whispered  some- 
thing to  the  guy  and  they  closed  it  up  and  they  told  all  the  patrons 
to  leave  and  everybody  left  and  went  out. 


282  ORGANIZED   CRIME    IN   INTERSTATE    COMMERCE 

The  Chaikrian.  Wliat  was  it  you  reported  to  the  sheriff's  office,  or 
to  the  prosecuting  attorney's  office  ? 

Mr.  FuLENWiDER.  After  I  completed  this  investigation  of  seeing 
the  actual  taking  of  the  equipment  right  out  of  the  truck,  Mr.  Sullivan 
called  up  Mr.  Zarowny  of  the  county  solicitor's  office  and  made  an 
appointment  for  me  to  come  up  there  and  explain  the  details  of  it, 
who  investigated  that  there  had  been  a  larceny  of  a  telephone,  and 
the  telephone  company  was  advised  of  this  and  they  were  willing  to 
prosecute. 

The  Chairman.  Was  the  telephone  man  with  you  ? 

Mr,  FuLENWiDER.  No,  sir ;  not  when  the  actual  taking  of  the  equip- 
ment was  done. 

The  Chairman,  Did  he  advise  you  he  was  willing  to  prosecute  ? 

Mr.  FtJLENwiDER.  Yes,  sir. 

The  Chairman.  Wliat  happened  ? 

Mr.  FuLENwiDER.  I  wcut  to  the  county  solicitor's  office  and  I  talked 
to  Michael  Zarowny,  and  he  was  trying  to  figure  out  a  legal  way  that 
could  be  used  so  this  thing  could  be  handled  and  to  have  these  men 
picked  up. 

He  called  down  to  the  deputy  sheriff's  office  and,  if  I  am  not 
mistaken,  it  was  Shields.  I  talked  to  Shields  about  it  and  told  him 
the  circumstances,  and  he  informed  me  that  it  was  a  little  bit  out 
of  his  hands  and  it  would  have  to  go  to  the  chief  criminal  investigator, 
who  was  Claude  High, 

So,  I  went  upstairs  to  Claude  High  myself  and  told  him  the  story, 
about  all  that  we  had  seen  and  he  flatly  refused  to  give  any